Prudential Life Insurance to fundamentally reform compensation system

Japanese affiliate of US giant makes move after customer exploitation scandal Prudential President Hiromitsu Tokumaru. The insurer also plans to reduce the number of executive officers — who currently number more than 30 — and clarify the responsibilities and roles of each. (Photos by Shintaro Ino and Kazuho Ishihara) TOKYO — Prudential Life Insurance has decided to abolish a salary system that leans heavily on commissions, Nikkei learned on Monday, as the performance-based system has been cited as an incentive for misconduct. Under the new system, salespeople will be paid about 300,000 yen a month (around $1,834), sources say.

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