June 19, 2012
NSK Ltd.
Public Relations Department
Response to Notification of Prosecution for a Violation of
the Antimonopoly Act
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.
June 19, 2012
NSK Ltd.
President and CEO
Norio Otsuka
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