Culture
Japan Airlines CEO Goes Viral Cutting His Own Salary to Avoid Laying Off Employees
During the early 2000s financial crisis, Japan Airlines was hit with heavy losses. While most executives might have turned to layoffs, CEO Haruka Nishimatsu chose another path.
He slashed his own salary by 60 percent, taking home just $90,000, less than some pilots, despite leading one of the world’s largest airlines.
Nishimatsu also gave up executive perks. He commuted by city bus, wore discount suits, and ate in the cafeteria with staff.
Instead of isolating himself in a corner office, he removed his office door to remain approachable, sending a clear message that management should be visible and accountable.
“We in management should work for the front-line people. It’s the front-line people who are working for the customers,” Nishimatsu shared.
By rejecting corporate luxuries, he demonstrated that leadership meant standing with employees rather than separating himself from their struggles.
His choices helped preserve jobs and morale as Japan Airlines attempted to stabilize its operations.
By sacrificing personally, he avoided multiple layoffs and showed that protecting livelihoods was more important than executive wealth or short-term shareholder gains.
Despite his efforts, Japan Airlines filed for bankruptcy protection on January 19, 2010, during a government-backed restructuring.
As part of the overhaul, Nishimatsu resigned. His departure marked the end of a chapter, but his leadership decisions continued to be studied worldwide.
“If you are a leader, you must set the example. You can’t just order people around.” he famously stated.
His legacy endures as proof that selfless leadership can inspire trust and respect, even in the most difficult economic conditions. Haruka Nishimatsu’s approach remains a rare model in today’s world.