Kentaro Okuda, chief executive officer of Nomura Holdings, has apologised and taken a voluntary 30 per cent pay cut after a former employee was charged with attempting to murder and rob customers in Hiroshima.

The shocking incident involves a former wealth management employee who reported to his branch manager on 2 August 2024 that police suspected him of arson and theft after allegedly drugging an elderly couple, stealing cash from their home, and setting the property on fire on 28 July 2024.

In a statement, Nomura expressed its deepest remorse: "We would like to express our heartfelt sympathy and apologize to our clients who suffered because of this incident. We also apologize to all those affected by the trouble it is causing."

The bank has implemented an extensive series of response measures, including stringent new protocols for client interactions. These include mandatory manager accompaniment during client visits, enhanced employee monitoring, and the introduction of mandatory continuous leave periods to detect potential misconduct.

"An incident like this must never happen at a financial institution entrusted with looking after its clients' assets," the bank stated, emphasising its commitment to rebuilding trust.

The former employee, who joined Nomura Securities as a new graduate in April 2018, was dismissed on 4 August after reporting the alleged crime. He was subsequently arrested on 30 October and charged on 20 November by the Hiroshima District Public Prosecutors Office.

As part of its accountability measures, the bank has implemented significant executive compensation reductions. This includes Okuda returning 30 per cent of his salary for three months, along with similar cuts for five other representative directors and several senior managers.

The bank has also established an Operational Reform Promotion Committee to evaluate and implement measures to prevent future misconduct. This includes revising employee evaluations, enhancing recruitment processes, and conducting comprehensive ethics training.

Despite these challenges, Nomura continues to show financial resilience. The bank remains committed to its strategic focus on wealth management, which has seen assets under management increase three-fold over the past four years.

Nomura has stressed its global reach, operating an integrated network across approximately 30 countries and regions, with a commitment to "connecting markets East & West" and serving the needs of individuals, institutions, corporates, and governments.

The incident has prompted a thorough internal review, with the bank consulting external legal counsel and experts to ensure a comprehensive and objective approach to preventing future misconduct.

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