MUFG execs take pay cut after safe deposit box incident

The bank is also strengthening its safe deposit box checks and procedures.

Five senior executives of MUFG, including its board chairman and CEO, are taking up to a 30% pay cut for three months following an incident where an ex-employee stole from safe deposit boxes.

Naoki Hori, chairman of the board of directors; Junichi Hanzawa, president and CEO; and Tadashi Yamamoto, managing executive director and chief executive for the retail & digital business unit, will all be taking a 30% reduction in their monthly compensation for three months.

Meanwhile, Naoto Yamada and Shin Kitamura, deputy chief executives for the retail & digital business unit, will take a 20% monthly compensation reduction for three months.

Other persons involved in this incident will be strictly disciplined according to internal rules, the Japanese megabank said in a statement published on 16 January 2025.

MUFG Bank said that it is reviewing its safe deposit box checks and procedures, as well as checking and monitoring of branches, after the incident.

This includes considering the future direction of its safe deposit box business in the medium and long-term.

In November 2024, MUFG disclosed that a former employee of its Nerima and Tamagawa branches stole cash, gold, and assets worth billions in yen from customers’ safe deposit boxes. The employee had previously been in charge of managing the boxes.

MUFG had confirmed the total amount of losses to be JPY1.4b. It has so far compensated 40 cases, totalling approximately JPY0.7b.

New measures being implemented include the strengthening of its management of safe deposit box spare keys by storing the keys separately. It is also strengthening access to the safe deposit box room and opening of the boxes, amongst others.

MUFG said that it will also strengthen direct checks of operation service department heads; enhance checking functions of subsidiaries and the unit inspection office; conduct more rigorous, arms-length intra-branch mutual checks; and strengthen checking and monitoring by branch management.