Prudential Life executives return 30% of pay for three months over staff fraud
In short
Prudential Life Insurance said on October 8 that President Hiromitsu Tokumaru (得丸博充) and two other executives will voluntarily return 30% of their monthly pay for three months, taking responsibility for sales staff defrauding customers of money. The company also published an external investigation report and said it had disciplined 157 current and former sales staff, including with disciplinary dismissals.
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Prudential Life Insurance said on October 8 that President Hiromitsu Tokumaru (得丸博充) and two other executives will voluntarily return 30% of their monthly pay for three months, taking responsibility for sales staff and others defrauding customers of money. Mainichi Shimbun and Nishi-Nippon Shimbun also reported the president's pay return, and Nikkei reported ahead of the announcement that executives would return part of their pay. [ 1 , 2 , 4 , 5 ]
The company also said it had taken disciplinary action, including disciplinary dismissal, against a total of 157 current and former sales staff involved in the money misconduct, Tokyo Shimbun reported. [ 4 ]
Prudential Life released the investigation report of a special committee made up of outside lawyers and others. According to Tokyo Shimbun, the report found that problems included a pay system for sales staff that placed excessive weight on winning new contracts. To prevent a recurrence, the company said it plans to introduce a minimum guaranteed salary for sales staff from 2027. [ 2 , 4 ]
The case came to light when it emerged that sales staff and others had improperly received more than 3 billion yen from customers. To review its governance and sales structure, the company refrained from selling new policies for a period running from February to November this year, Tokyo Shimbun reported. [ 4 ]
Why it matters
The investigation report blamed a pay system for sales staff that placed too much weight on winning new contracts, and the company said it will introduce a minimum guaranteed salary for sales staff from 2027. The case led Prudential Life to suspend sales of new policies for a period running from February to November this year, according to Tokyo Shimbun.
Key facts
- Prudential Life Insurance announced on October 8 that three executives, including President Hiromitsu Tokumaru, will voluntarily return 30% of their monthly pay for three months. [ 4 ]
- The president and others will return 30% of their pay for three months. [ 2 , 4 ]
- The pay return is a response to sales staff and others defrauding customers of money. [ 4 ]
- The company said it had disciplined a total of 157 current and former sales staff involved in the money misconduct, with measures including disciplinary dismissal. [ 4 ]
- A special investigation committee of outside lawyers and others published a report that cited a sales staff pay system placing excessive weight on new contracts. [ 4 ]
- As a measure to prevent a repeat, the company plans to introduce a minimum guaranteed salary for sales staff from 2027. [ 4 ]
- Sales staff and others improperly received more than 3 billion yen from customers, Tokyo Shimbun reported. [ 4 ]
- The company refrained from sales activities for new policies for a period running from February to November this year. [ 4 ]
Confirmed by several sources
- Prudential Life executives will return part of their pay over the fraud of customers' money. [ 1 , 4 , 5 ]
- The president is among those voluntarily returning pay. [ 2 , 4 , 5 ]
- The pay return is 30% for three months. [ 2 , 4 ]
- An investigation report on the case was released on October 8. [ 1 , 2 , 4 ]
Still unclear
- The names and posts of the two other executives returning pay. The documents name only President Tokumaru.
- The figure of 157 disciplined current and former sales staff. Only Tokyo Shimbun reports this figure.
- The planned minimum guaranteed salary from 2027 and the report's findings on the pay system. Only Tokyo Shimbun reports these details.
- How many customers were affected and over what period the money was taken. The documents do not say.
What local media are saying
Timeline, local time
- Nikkei reports that Prudential Life will have executives return part of their pay and will release a report on the fraud on October 8. [ 1 ]
- Mainichi Shimbun reports that the president and others will return 30% of their pay for three months and that the report has been published. [ 2 ]
- Tokyo Shimbun reports the pay return, the disciplinary action against 157 staff and the investigation report's findings. [ 4 ]
- Nishi-Nippon Shimbun reports that the president will voluntarily return part of his pay. [ 5 ]