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Japanese state-backed fund in executive pay dispute

Reuters  |  TOKYO 

By Fujita

TOKYO (Reuters) - Japan's relationship with state-backed (JIC) has been damaged by excessive pay demands, an said on Monday.

JIC walked out of a Nov. 24 meeting to discuss remuneration levels at the investment fund, which was formed in September to manage more than $17 billion of public money, said.

JIC is seeking annual compensation of about 55 million yen ($480,000) for Tanaka and top management, Sasaki said, adding that this is higher than the governor's 35.3 million yen and the 31.5 million yen paid to the of the (GPIF).

"Trust between the ministry and JIC's Tanaka has been damaged," Sasaki said. "It is difficult for the government to ask JIC to manage 2 trillion yen."

Takaka, a former of Mitsubishi UFJ Financial Group, said in October that JIC plans to set up funds with private equity firms, sovereign wealth funds and institutional investors.

JIC said in a statement on Monday that the compensation it sought was the same as offered by the Ministry of Economy,

Sasaki acknowledged that the ministry had previously offered to pay as much as 55 million yen to JIC's top management but rescinded that offer last month and asked the fund to reconsider salary levels.

($1 = 113.5800 yen)

(Reporting by Fujita; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 19:08 IST