Encouraging Employee Initiative

Globally active firm with worldwide opportunities, Investing in our people, Education and training expenses (FY2018/2019 results), Japan 2 billion 4 million yen, EMEA 2 hundred 80 million yen, Americas 6 hundred 94 million yen, AEJ 2 hundred 47 million yen, Total 3 billion 2 hundred 25 million yen, In-house training (FY2018/2019, Japan), Total no. of participants: 302,460 employees, Total no. of hours: 537,323 hours

Fundamental Approach

The Nomura Group employs a pool of professional personnel around the world who are capable of providing financial services that meet the diverse needs of its clients and whose career paths within the group and values are unique. We strive to manage our personnel in a flexible and suitable manner so that each and every one of our employees can thrive as they contribute their skills to the workplace.

In addition to providing well-developed education and training programs to support our employees' self-led skill building endeavors, we also evaluate the achievements and skills of each employee and deploy our personnel with an eye on the future career path of each individual.

In this manner, the Nomura Group is able to maximize the skills of each employee and further enhance its client services through personnel management that emphasizes diversity in the workplace.

Personnel Development

We believe that the establishment and ongoing improvement of personnel systems is important for enabling people with diverse career backgrounds and values to demonstrate their talents as part of our global business. We therefore accommodate diverse working styles and utilize a rehiring system that provides more opportunities for all employees to develop their capabilities. We also provide appropriate performance-based assessments and feedback through a merit-based system, diverse education and training programs to help all employees develop their careers.

Reviews of and Improvements in Personnel Development

Through our many internally-developed training programs, we collect participant feedback and make regular improvements to training program content to better meet employees' needs. We endeavor to provide employees with expanded capacity-building opportunities by consistently adding new training areas. To help build up expertise, we also collaborate with stakeholders such as educational institutions and NGOs in various ways, such as participating in extension programs, inviting external experts to hold personal development seminars and jointly developing training programs.

In Nomura Securities, each division appoints instructors to serve for one year to guide and train new hires and help them develop into independent-minded employees. In the Retail Division, Nomura Development Curriculum was introduced for sales staff (partners) to acquire within a prescribed period of time the skills and knowledge essential for providing services to clients in April 2019.

To make each employees development more visible, Nomura has established and utilizes a framework that brings together the necessary actions and skills to improve performance and achieve targets to clearly indicate the skills to be developed by employees and their evaluators through dialogue.

In addition to training programs for new hires, our core personnel development programs in Japan include group training programs based on years of service and job position or according to title and on-the-job training. Additionally, we have a leadership program for developing the next generation of leaders, which we offer to select employees based on their performance and potential. The sponsorship program is designed to nurture female executives for the future. For managerial-level personnel at overseas offices, the global program is conducted once a year at the headquarters in Tokyo.

To support self-driven skills development, we have also established a self-study support system that includes a wide range of external training and correspondence courses and voluntary group training on weekends at our own training facilities. Meanwhile, to develop personnel capable of playing an active role globally, we have established study-abroad programs and overseas training programs in which employees themselves determine where they go and what topics they study.

Miscellaneous Training Programs

Language Training Language training helps employees working on a global stage to hone their language abilities and strengthen their skills. Employees can choose from private, group or e-learning courses, based on their own individual learning needs and methods.
Certification Support
  • Financial Planner License
  • Securities Analyst License, etc.
  • Real Estate Notary
  • Asset Succession Planner, etc.
NBA
(Nomura Business Academy)
To enable employees to take the lead in their career development and to improve their abilities, NBA is ready as a self-study support system that includes correspondence courses, e-learning (about 300 courses), seminars, assistance for attending language school and voluntary group training programs on weekends.
Global Learning The Nomura e-learning Library enables our people to take various courses on financial markets and business skills through which they can develop a broad knowledge essential for the financial services industry.

Hiring

At Nomura Group, our people are our greatest asset and we place priority on hiring exceptional talent. We focus on the capabilities of each individual candidate without regard to nationality, race, gender or other such attribute, and our hiring decisions reflect the diversity of the financial services business. We provide candidates with a sound understanding of our businesses and what to expect when working with us. We value the current abilities as well as the potential of each candidate. By placing the right people in the right roles, we ensure that people from diverse backgrounds can maximize their potential and thrive at Nomura.

The following are some of the opportunities we offer at Nomura.

New Graduates

Internship

Our internship programs offer students the opportunity to experience various areas of our business from Retail to Wholesale, and deepen their knowledge of the financial services business through mainly group work-centered activities.

In addition to learning about the financial services business, students learn about the roles and purpose of the securities industry. This helps students grow and gives them the opportunity to think about their future careers. Internships are not a consideration in our hiring decisions.

Nomura Passport

Nomura Passport is an employment program introduced in 2018 for students pursuing doctoral degrees in the fields of science and technology. Selected students are offered positions at the firm and given the option to accept the offer after they have attained their doctoral degrees. In addition, students are not obliged to work at Nomura after completing their studies.

Through this program, we are working to attract people with expertise in such areas as AI development, data science and digitalization.

Professionals

We actively recruit experienced professionals (mid-career hires) throughout the year to join our team across all divisions. Each year, we welcome approximately 400 people in Japan and 1,500 people to our international offices. We also have a reemployment program for former employees who retire from the firm due to personal life events such as taking care of young children.

Nomura also focuses on hiring and developing local employees in overseas offices. For further details, please refer to the Careers page.

Proper Evaluation and Compensation

Nomura Group is establishing its status firmly as a globally competitive financial services group. To support this, we recognize that our people are our most valuable asset.

To properly evaluate performance and further the development of its personnel, the Group adopts an integrated personnel evaluation process and all employees in principle participate in this process. Employees set their goals at the beginning of each year, and these are aligned with the Group's strategy and competencies. Employees then meet with their supervisors in the middle and end of the year to have frank discussions regarding goal attainment. This approach enables the Group to evaluate its personnel fairly and identify development opportunities suited to their capabilities and competencies.

For personnel chosen from among those in managerial-level positions, the Group also provides 360-degree evaluation based on feedback from their supervisors, fellow employees, and persons under their supervision.

The Group has established its Compensation Policy for Group management and employees. This policy aims to promote the sustainable growth of the Group and continuing increases its shareholder value in the long term. It also has the objective of contributing to the value-added the Group can offer its customers and realize continued improvement in the Group's evaluation among its clients.

In Japan, Nomura Securities provides all employees an opportunity to have interviews with HR to discuss their careers basically once a year. HR advisors are also available for the staff in the Wholesale Division and some corporate divisions.

Basic Nomura Group Compensation Policy and Nomura Group Compensation Policy for Employees

The "Basic Nomura Group Compensation Policy" and the "Nomura Group Compensation Policy for Employees" are as follows.

"Basic Nomura Group Compensation Policy"

Nomura Group has established compensation policy for Nomura Group officers and employees, including directors and executive officers of Nomura Holdings, Inc. ("NHI"). This policy is referred to as the "Basic Policy" and is as follows.

Compensation Governance

As a company with three Board Committees structure, pursuant to Japanese corporate law, NHI has established an independent statutory Compensation Committee. Majority the Committee members are outside directors. The Committee has established both the Basic Policy and a Compensation Policy for Directors and Executive Officers of NHI, on the basis of which it considers and determines the details of individual compensation for Directors and Executive Officers of NHI.
With respect to the relevant policies and total compensation funding for Nomura Group officers and employees other than the Company's directors and executive officers, certain decisions regarding employment and remuneration matters are delegated to the "Human Resources Committee" ("HRC") by Executive Management Board of NHI. The HRC is chaired by the Group CEO and at a minimum is composed of the Chief Finance Officer and Chief Risk Management Officer. The HRC considers and determine the above mentioned matters by cooperating with the remuneration committees in each region.

Compensation Policies and Practices

Nomura Group recognizes that its employees are key in contributing to society in line with its mission of "We help to enrich society through our expertise in capital markets".
Compensation for Nomura Group employees is designed to support achieving sustainable corporate growth, increasing enterprise value over the medium and long-term and maintaining sound and effective risk management, while at the same time positively contributing to the interest of all Nomura shareholders. In addition, in order to ensure that Numara Group attracts, retains, motivates and develops talent, the level and structure of remuneration takes into account the roles and responsibilities of individuals as well as the market pay levels in Japan and overseas, doing so in line with any relevant laws and regulatory expectations.

1) Sustainable corporate growth and increasing enterprise value over the medium and long-term

Compensation for Nomura Group employees aims to realize Nomura Group corporate philosophy, to promote healthy corporate culture and behaviour in line with Nomura Group "Code of Conduct" and to facilitate a greater alignment with the environmental, social and governance ("ESG") considerations.
Based on the pay-for-performance principle, compensation supports Nomura Group business strategy, objectives and the aim of sustainable growth and increasing enterprise value over the medium and long-term, while at the same time it ensures the maintenance of sound and market-competitive remuneration practices.

2) Sound and effective risk management

Nomura Group maintains a sound and effective risk management with an appropriate risk appetite. The Company adjusts the performance measurement standards and indicators when determining compensation by considering both financial and non-financial risks in each business. The qualitative factors such as conduct, compliance, professional ethics and corporate philosophy are considered in determining the final amount of remuneration, which may include a reduction resulting from a disciplinary action.

3) Alignment of interests with shareholders

For Nomura Group employees who receive a certain amount of remuneration, a portion of the remuneration is stock-related remuneration linked to shares of NHI with an appropriate deferral period applicable, in order to ensure an alignment with the shareholders' interests.
In addition, when granting stock-related compensation, in the event of a material revision of Nomura Group financial statements or a material violation of Nomura Group rules and policies, employees' compensation may be subject to suspension, reduction, forfeiture of rights, or for some employees even re-payment (so-called "clawback").

Approval and Revision of the Basic Policy

The approval, amendment or repeal of the Basic Policy can be made by the Compensation Committee of NHI.

"Nomura Group Compensation Policy for Employees"

Based on the "Compensation Policy of Nomura Group" (the "Basic Policy"), Nomura Group has established compensation policy for Nomura Group officers and employees, including senior managing directors of Nomura Holdings, Inc. ("NHI") and directors of subsidiaries of NHI but excluding directors and executive officers of NHI. This policy is referred to as the "Employee Policy" and is as follows.
Matters not provided for in the Employee Policy shall be governed by the provisions of the Basic Policy.

Compensation Governance

Supervised by NHI Human Resources Committee ("HRC"), the regional committees governing employee compensation are composed of representatives of Finance, Risk Management, Compliance, Human Resources, and other departments as appropriate. These committees implement Nomura Group global compensation governance rules.
The proposed compensation of Control Function staff (Risk Management, Compliance, Internal Audit) shall not be determined by the front office business and the performance evaluation of such staff shall not be determined solely by the financial performance of the business for which such staff are responsible.

Compensation Policies and Practices

Nomura Group recognizes that its employees are key in contributing to society in line with its mission of "We help to enrich society through our expertise in capital markets".
Compensation for Nomura Group employees is designed to support achieving sustainable corporate growth, increasing enterprise value over the medium and long-term and maintaining sound and effective risk management, while at the same time positively contributing to the interest of all NHI shareholders. In addition, in order to ensure that Nomura Group attracts, retains, motivates and develops talent, the level and structure of remuneration takes into account the roles and responsibilities of individuals as well as the market pay levels in Japan and overseas, doing so in line with any relevant laws and regulatory expectations.

1) Sustainable corporate growth and increasing enterprise value over the medium and long-term

Compensation for Nomura Group employees aims to realize Nomura Group corporate philosophy which underpins its Mission of Contributing to Society and its Vision of being a Trusted Partner, being based on the Values of Entrepreneurial Leadership, Teamwork and Integrity, to promote healthy, diverse corporate culture and the right behaviour in line with Nomura Group "Code of Conduct" and to facilitate a greater alignment with the environmental, social and governance ("ESG") considerations.
Based on the pay-for-performance principle, compensation supports Nomura Group business strategy, objectives and the aim of sustainable growth and increasing enterprise value over the medium and long-term, while at the same time it ensures the maintenance of sound and market-competitive remuneration practices.
Compensation at Nomura reflects and aligns with the performance of Nomura Group as a whole, its divisions, as well as individual employees, taking into account both the business strategy and market considerations.

2) Sound and effective risk management

Nomura Group maintains a sound and effective risk management with an appropriate risk appetite. It adjusts the performance measurement standards and indicators when determining compensation by considering both financial and non-financial risks in each business, taking a holistic approach. The qualitative factors such as conduct, compliance, professional ethics and corporate philosophy are considered in determining the final amount of remuneration, which may include a reduction resulting from a disciplinary action. Risk Management, Compliance and Finance divisions provide key inputs into the overall risk and performance assessment to ensure appropriate consideration of these factors.

The compensation package offered to Nomura Group employees comprises two key elements:

  • Fixed compensation - reflects the role, responsibilities and experience of the employee; and
  • Variable compensation - intends to incentivise performance, promote the right behaviours, drive employee growth and development. For higher paid employees, a portion of the variable compensation may be deferred, balancing short-term with medium and long-term interests of Nomura Group.

Nomura Group seeks to balance the components of compensation between fixed and variable according to the employee' role and seniority. In principle, the percentage of deferral increases as an employee's compensation increases. Guaranteed compensation is allowed only in limited circumstances such as new hire or, where allowed, strategic business needs. Multi-year guarantees are typically prohibited.

3) Alignment of interests with shareholders

Deferred variable compensation is intended to align the interests of employees and NHI shareholders, and to encourage a long-term, sustainable approach to the management of the Company by senior management and more highly paid employees. For Nomura Group employees who receive a certain amount of remuneration, a portion of the remuneration is stock-related remuneration linked to shares of NHI with an appropriate deferral period applicable, in order to ensure an alignment with the shareholders' interests.
In addition, when granting stock-related compensation, in the event of a material revision of Nomura Group financial statements or a material violation of Nomura Group rules and policies, employees' compensation may be subject to suspension, reduction, forfeiture of rights, or for some employees located in specific jurisdictions/regions even re-payment (so-called "clawback").

Approval and Revision of the Employee Policy

The approval, amendment or repeal of the Employee Policy can be made by the HRC.

The following table shows an outline of the Group's compensation system.

Please scroll horizontally to look at table below.

Compensation
Components
Objectives Specific Elements
Fixed Compensation
  • Rewards individuals for their knowledge, skills, competencies and experiences
  • Reflects local labour market standards
Base salary
 
  • Reflects practices of local labour markets to deliver allowances as a part of fixed compensation to individuals
Housing allowances
Overtime pay
Variable Compensation
  • Rewards team and individual performances, and their contribution to results as well as the Company's strategic and future value
  • Reflects appropriate internal and market-based peer comparisons
  • Reflects broad views on compensation, including individual performances, approaches to risk, compliance and cross-divisional cooperation
Cash bonuses
Deferred compensation
Nomura Report Download
Feedback to Sustainability