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JAPAN: Yazaki top two return salaries as DoJ stuns with US$470m price-fixing fine

By Simon Warburton | 1 February 2012

Yazaki's chairman and president will return half of their salaries for three months in response to the US Department of Justice's (DoJ) enormous price-fixing fine.

News of the top two Yazaki executives decision to forgo wages comes on top of the DoJ's imposition of a huge US$470m fine in relation to cartel activities with certain competitors for automotive wire harnesses and related products.

The company said it had been "faithfully cooperating with the DOJ investigation" since its start on 23 February, 2010 and reached a plea agreement.

A Yazaki statement noted: "The company will account for the amount equivalent to the fine as an extraordinary loss in the settlement of accounts for the fiscal year ending June, 2012. The persons involved shall be subject to strict internal disciplinary measures. In light of the seriousness of this matter and as a reflection of remorse, the directors shall return a part of their remuneration as follows: Yasuhiko Yazaki, chairman 50% for three months [and] Shinji Yazaki, president, 50% for three months.

"In relation to this issue, investigations were also initiated at approximately the same time by the Japan Fair Trade Commission and the European Commission. That matters have come to this, Yazaki Corporation takes with the utmost seriousness.

"In order to prevent any recurrence, the company has intensified its various efforts including conducting thorough internal investigations, reviewing internal rules, conducting regular educational programs and monitoring activities.

As well as automotive wire harnesses, Yazaki develops and manufacturers meters, electronic components and other products for automotive use. Yazaki in North America was not immediately available for comment.

Further details of the DoJ decision are available here.

The DoJ also announced a US$78m anti-trust fine for Denso this week.