Japan Airlines’ CEO got a pay cut after worker misconduct. That’s not so unusual in Japan.

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Publish Date:
June 18, 2026
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Business Insider
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Summary

A pay dock for CEOs stemming from the actions of rank-and-file employees is not an unusual practice in Japan’s corporate culture. Curtis Milhaupt, a Stanford Law School professor with expertise on Japan’s legal system, told Business Insider that in some cases, top-level executives could be expected to resign.

While these kinds of financial disciplinary actions are not uncommon in Japan, Milhaupt said the move is often more symbolic than a foolproof measure to stop corporate misconduct.

“It’s simply a way of communicating a sense of responsibility to the public,” Milhaupt said. “There is plenty of corporate misconduct in Japan, as there is everywhere. So it is doubtful that these expressions of remorse effectively deter misconduct.”

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