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Determinants of CEO Compensation in Japan: An empirical study using individual CEO pay data (Japanese)

Author

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  • Hideaki MIYAJIMA
  • Takuji SAITO
  • Yasuhide KONNO
  • Kazuma TSUJI

Abstract

CEO compensation has long been recognized as one of the most important corporate governance mechanisms. However, in Japan, unless CEO compensation exceeds 100 million yen, firms are not required to disclose individual CEO pay. This study examines the trend of CEO compensation in recent years in Japanese firms by utilizing data from the executive compensation survey jointly conducted by the Deloitte Tohmatsu Group and Sumitomo Mitsui Trust Bank, which includes CEOs with compensation below the 100 million yen. The structure and changes in CEO compensation vary significantly depending on firm size. In large firms, stock-based compensation—particularly restricted stock—has been increasing, leading to substantial growth in overall compensation, whereas such trends were not observed among small- and mid-cap firms. Furthermore, board and ownership structure affect CEO compensation. Interestingly, while in the United States stronger monitoring by outside directors and other governance mechanisms tends to suppress executive pay, in Japan the opposite tendency was observed, with stronger monitoring associated with higher compensation.

Suggested Citation

  • Hideaki MIYAJIMA & Takuji SAITO & Yasuhide KONNO & Kazuma TSUJI, 2026. "Determinants of CEO Compensation in Japan: An empirical study using individual CEO pay data (Japanese)," Discussion Papers (Japanese) 26012, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:26012
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