NSK Ltd., its former officers and its former employee were prosecuted for a violation of the Antimonopoly Act of Japan regarding sales of bearing products as of June 14, 2012 at the Tokyo District Court by the Tokyo District Public Prosecutors Office. We offer our most sincere apologies for the concern caused to our shareholders, customers and other stakeholders regarding this matter.
Since the initial investigation of the Japan Fair Trade Commission which began in July 2011, it has been our utmost priority to fully cooperate with the ongoing investigations of the relevant authorities. We are also conducting internal investigations for fact-finding while taking care not to interrupt the investigations. We are also studying how to strengthen compliance systems, have implemented all measures possible at this stage, and are working on further initiatives to enhance compliance.
We regard the prosecution of the company, its former officers and its former employee for a violation of the Antimonopoly Act with the utmost seriousness. As President and CEO of NSK, I will make it my first and foremost priority to take the lead in carrying out a thorough internal investigation of the cause, and to establish and implement every necessary measure to strengthen compliance in order to restore trust in the company. Every single officer and employee shall make compliance with applicable laws and regulations their top priority.
We also report that our executive officers have offered the NSK Compensation Committee to return a portion of their monthly salaries in consideration of the great deal of concern this matter has caused to our shareholders, customers and other stakeholders and in consideration of the impact of this matter on society. The Compensation Committee decided on the amount and the period for which their salaries were to be returned as a result of discussions and approval of the offer as below:
- The President and Chief Executive Officer will return 30% of his monthly salary as executive officer from June 2012 through August 2012.
- Three Executive Vice Presidents will return 20% of their monthly salaries as executive officers from June 2012 through August 2012.
President and CEO