From Satya Nadella to David Solomon: Five CEOs who accepted pay cuts despite no personal fault

A CEO's pay cut is often associated with poor business performance or personal misconduct. However, in several high-profile cases, business leaders accepted salary reductions after employee actions, cybersecurity failures or governance lapses, even though they were not personally accused of wrongdoing. In many instances, the move was aimed at reinforcing leadership accountability and restoring stakeholder confidence.

Here are five notable examples.

Junichi Hanzawa: MUFG Bank chief accepted salary cut after safe deposit theft case

MUFG Bank CEO Junichi Hanzawa accepted a 30% pay cut for three months after a bank employee was accused of stealing valuables from customers' safe deposit boxes. Several senior executives also accepted salary reductions as the bank sought to restore customer confidence and strengthen oversight following the incident. Although Hanzawa was not accused of involvement, the pay cut formed part of the bank's broader response to demonstrate accountability and rebuild trust.

Pay impact

• Reported compensation (FY2024): Approximately JP¥314 million to JP¥384 million (around $2.0 million to $2.4 million).
• Pay cut: 30% salary reduction for three months.

Satya Nadella: Microsoft CEO took bonus cut after cybersecurity failures

Microsoft CEO Satya Nadella voluntarily requested a reduction in his annual cash incentive following criticism over a series of cybersecurity incidents that exposed customer and government data. Although Nadella was not personally responsible for the attacks, he told Microsoft's board that accountability should begin with leadership. The board approved a reduction of more than 50% in his cash incentive, lowering it from about $10.66 million to $5.2 million, while his total compensation for fiscal 2024 exceeded $79 million because of stock awards and the company's strong financial performance. Microsoft also linked a larger portion of executive compensation to cybersecurity performance going forward.

Pay impact

• Reported compensation (FY2024): More than $79 million.
• Pay cut: Cash incentive reduced by over 50%, from $10.66 million to $5.2 million, at Nadella's request.

Mitsuko Tottori: Japan Airlines chief accepted pay cut over crew misconduct

Japan Airlines CEO Mitsuko Tottori accepted a 30% salary cut for two months after two cabin crew members violated the airline's alcohol regulations before a flight. Although she was not involved in the incident, Tottori accepted responsibility as the head of the airline as the company sought to reinforce safety standards and restore public confidence in its operations.

Pay impact

• Reported compensation (FY2024, ended March 31, 2025): Approximately ¥1.208 billion (around $8.2 million).
• Pay cut: 30% salary reduction for two months.

David Solomon: Goldman Sachs CEO accepted compensation cut after 1MDB scandal

Goldman Sachs reduced CEO David Solomon's compensation following the bank's role in the multibillion-dollar 1MDB corruption scandal, which resulted in significant regulatory penalties and settlements. Solomon was not accused of involvement in the wrongdoing, much of which predated his tenure as chief executive. However, the bank's board reduced his compensation as part of broader accountability measures linked to the scandal, underscoring the principle of leadership responsibility during major governance failures.

Pay impact

• Reported compensation (2020): Approximately $17.5 million after the reduction.
• Pay cut: Compensation reduced by $10 million from the originally proposed $27.5 million.

Kentaro Okuda: Nomura chief took pay cut after former employee's alleged crimes

Nomura Holdings CEO Kentaro Okuda accepted a 30% pay cut for three months after a former employee was arrested for allegedly attempting to rob and murder a client. The incident prompted the financial services group to announce governance reforms and strengthen internal controls. Okuda publicly apologised and said the company was committed to preventing similar incidents and rebuilding trust with clients.

Pay impact

• Pay cut: 30% salary reduction for three months.
• Reported compensation: Not disclosed in connection with the pay-cut announcement.

Leadership accountability beyond personal fault

These cases show how some corporate leaders and boards have chosen to use compensation reductions as a demonstration of accountability, even when chief executives were not personally accused of wrongdoing. Whether responding to cybersecurity breaches, employee misconduct or governance failures, the salary cuts were intended to reinforce leadership responsibility and help rebuild trust among customers, investors, employees and regulators.