Tech & Biz

JAL - What a CEO Example

by mazevedo | November 21, 2008 at 03:38 pm

2902 views | 13 Recommendations | 3 comments

It seems as though JAL President and CEO Naruka Nishimatsu is a great example of a hard working, just and fair CEO. According to a recent interview by CNN Reporter, Kyung Lah, we can see that JAL's CEO is way different than most of the CEOs we have in North America and probably around the world. Take a look at the interview below and if possible share your thoughts with me. It will be something interesting to talk about - do you believe Nishimatsu's lifestyle and work ethics should be followed by more CEOs across the globe?

KYUNG LAH, CNN REPORTER: After his morning commute on the city bus, Haruka Nishimatsu heads into the office and gets busy at his desk with the rest of his Japan Airlines coworkers. At lunch, he lines up in the cafeteria and hopes lunch doesn't get too cold as he waits to pay. Not exactly the glamorous life you'd expect from the CEO of one of the world's top ten international airlines. Is it so strange, asks Nishimatsu.

HARUKA NISHIMATSU, JAL PRESIDENT & CEO: I don't think so. So strange, deska.

LAH: Perhaps that's why when JAL slashed jobs and asked older employees to retire early, Nishimatsu cut every single one of his corporate perks, and then for three years running slashed his own pay. In 2007, he made about $90,000 U.S., less than what his pilots earn.

LAH: "The employees who took early retirement are the same generation and age as me. I thought I should share the pain with them, so I changed my salary." Nishimatsu shrugs it off, saying it's not a big deal.

LAH: But that certainly stands in contrast to this: CEOs in the United States being grilled by Congress over perceived corporate excesses, ballooning salaries and bonuses. When we mentioned to Nishimatsu that the top paid U.S. CEOs make tens of millions, in some cases nearly $200 million a year, and yes, that's in dollars...

NISHIMATSU: (IN JAPANESE) Dollar? In U.S. dollar. Ahhh.

LAH: Can you imagine making that much?

NISHIMATSU: No.

LAH: In Japan, says Nishimatsu, there's less of a pay gap between the top and the bottom. "We in Japan learned during the bubble economy that businesses who pursue money first fail. The business world has lost sight of this basic tenet of business ethics." Nishimatsu says his airline has a long, difficult recovery ahead. As far as his pay, he's dug into his savings like the rest of us.

NISHIMATSU (TRANSLATED): The air conditioning broke, and the water heater, and the car. My wife is still telling me, "This is all your fault."

LAH: But relating to what his employees and his passengers are feeling and living in the global slowdown might be the ticket to his airline's own survival. Kyung Lah, CNN, Tokyo.

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Blue Crush

at 17:25 on November 21st, 2008

I saw this story on CNN last week. When the story broke of the CEOs of the big 3 all taking their private jets to their meeting in Washington this week, this is the first person I thought of .

Why oh why can't people get real here, and start living within their means? Or even set an example for others to live by? What's the use of keeping up with the Jones, when the Jones might be living on the street (or with relatives) tomorrow?

Joanna Pineda (not verified)

at 12:16 on November 22nd, 2008

I think that small businesses in the US understand what this article is all about. As a small business owner, my employees are like family. I have cut my salary or not paid myself during the early years of my company when times were tough. Today, there is not a big gap between the most senior staff and the receptionist. Somehow the big, public companies have lost touch with reality and with their employees. I can't imagine laying off someone while paying myself handsomely. Just seems wrong. And I can't imagine a more hard-working and dedicated staff than those who work for me.

MKNonline (not verified)

at 18:34 on December 11th, 2008

I wish Nishimatsu and JAL luck in surviving the tight economy. Ethically, a CEO who acts so selflessly should be rewarded. I hope the economy agrees and rewards him for the sacrifice.

It's not the most rational thing to give up hundreds of thousands of dollars just to set an example, especially when it could still lead to doom. Not knowing his past at all, I could assume he spent years climbing the ladder to executive to get the perks other CEO's to get. Giving them up shows such an admirable dedication to his company that so many other CEO's of floundering financial corporations or automakers or airline companies don't seem to want to put out there. This act really shows more than anything his passion and belief in his company. I don't think you can be a good leader if your actions can't reflect that.