Prudential Financial's Japanese subsidiary, Prudential of Japan, published a report from a Special Investigation Committee detailing widespread 'inappropriate monetary conduct' by sales employees. The company acknowledged the issue as a 'structural problem' stemming from its management and business model and has launched a comprehensive plan to reform its operations, governance, and compensation structures.
Key Details
- Investigation Findings: The report concluded the misconduct was a structural issue, not isolated incidents, caused by a business model that over-relied on personal networks and a culture that placed undue emphasis on new contracts.
- Comprehensive Reforms: The remediation plan includes overhauling the agency structure (reducing from 139 to 40-50 agencies), revising compensation to prioritize long-term service (increasing after-sales service pay from <5% to ~20% of total), and strengthening head office oversight and customer protection.
- Financial & Disciplinary Impact: As of September 16, 2026, a total of 3.49 billion yen in customer reimbursements has been deemed eligible across various cases. Disciplinary action has been taken against 146 employees, with 53 facing dismissal. Top executives at the Japanese unit will voluntarily return 30% of their monthly remuneration for three months.