Kanebo executives take pay cut to apologise for product recall
Ten of the company\'s executives will be taking voluntary pay cuts of between 10%-50% for the next six months
Japanese cosmetics giant Kanebo has announced that ten of its executives will be taking voluntary pay cuts of between 10%-50% for the next six months in order to show remorse for the Rhododenol scandal. The company had to recall over 50 products containing the skin-brightening compound, which had been developed in-house and left some users with white blotches on their skin.
Company Chairman Hajime Miyauchi and the company’s President, Masumi Natsusaka, will both take the biggest pay cuts at 50%. The director in charge of R&D at the firm will lose 40%, while the seven remaining executives will face cuts of 10%-20%. The cuts began in September and will last until February.
“They know that the recall has incurred high costs and resulted in a loss of sales and profit for the company, so they made the choice to do this on their own as a way to help out,” said a company spokesperson.
