JAL CEO Cuts Salary
The CEO of Japan Airlines drastically cut his salary, which is now less than what JAL’s pilots are paid, in order to slash costs and weather the upcoming year. He is shown in this interesting clip from CNN eating amongst the rest of the company’s employees in the cafeteria and taking public transport to work. Would CEOs in other countries act this way? Why is this?
Japanese culture is highly group-oriented, which means even leaders are subject to economic hardship. The behavior of corporate leaders in the US and other Western countries could be explained by these countries’ emphasis on individual rights and freedoms. Understanding the root of these actions could greatly impact the success of business during recessions. Enacting changes like these will definitely be culturally determined, but how often do solid cultures, like those surrounding business practices, change under pressure?
If you can’t view the video here, please go here.
