Top management at Fujitsu will see their pay cut over the coming months in punishment for a major computer failure at the Tokyo Stock Exchange that delayed trading on November 1.
Fujitsu was blamed by Tokyo Stock Exchange for the problems that delayed the start of trading until 1:30pm. local time, four-and-a-half hours later than normal and one-and-a-half hours before the end of the session.
Company president, Hiroaki Kurokawa, will see half of his pay deducted for six months while two other company vice-presidents, Michiyoshi Mazuka, who is responsible for Fujitsu's systems sector, and Koichi Hironishi, who is responsible for Fujitsu's financial systems sector, will see a quarter of their pay cut for six months. Four other staff will lose 10 per cent of their salary for either six or three months.
Chairman, Naoyuki Akikusa, would forgo half of his salary for six months at his own request, Fujitsu said.
The computer glitch was traced back to the incorrect patching of a file in mid-October during an upgrade to the trading system. A bug was found in an existing program, however Fujitsu provided incorrect instructions as to how to apply a patch, according to the exchange.
The bug didn't reveal itself until the morning of November1 when the stock and convertible bond trading system crashed while it was being started. The problem hadn't appeared earlier because it was related to a monthly data compression run that occurred on October 31 after trading had finished, the exchange said.
The punishments dished out by Fujitsu closely mirror those imposed on senior executives of the stock exchange. The exchange announced on November 11 that its president, Takuo Tsurushima, would see his pay halved for six months and two other executives would lose 30 per cent of their pay for six months. Five other staff were also censured.