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Shift in the Composition of Japan's Top 10 Most Lucrative Places to Work
Based on average annual salaries, the once high-flying television broadcasting industry no longer tops the rankings in Japan.
What’s new: Toyo Keizai has just published the results of a fascinating analysis to determine which of Japan's listed companies pay the highest average annual salaries, and how the ranks of these companies have changed over the past two decades.
How it works: Based on data from annual securities filings, the publisher created a ranking of average annual salaries that summarizes the characteristics and changes of high-paying companies based on four key snapshots over the past 20 years in 2004, 2009, 2014, and 2019.
The rankings are based on companies with 20 or more employees on a stand-alone basis to exclude companies with fewer employees due to their holding company structure. If a company has changed its name, it is listed under its current name.
The bottom line: Just as the companies that make up the Dow Jones Industrial Average tend to change over time, the past 20 years have seen a reshuffling of Japan's most lucrative places to work.
Television Broadcasting #1 a Generation Ago: In the 2004 ranking, Fuji Media Holdings, Asahi Broadcasting Group Holdings, and Nippon Television Holdings were among the top five companies, and television media accounted for five of the top ten companies. This indicates that the television industry was highly profitable and generated high annual revenues during this period, two factors that were used to attract top talent by offering high-paying positions.
This trend continued in 2009, with Fuji Media Holdings maintaining its top position and Asahi Broadcasting Group Holdings, Inc. and TBS Holdings, Inc. also in the top three.
General trading companies also ranked high, with Mitsui & Co. ranking 6th, Sumitomo Corporation ranking 8th, and Mitsubishi Corporation ranking 9th. While many companies were hit hard by the financial crisis, industries that were relatively unaffected by the crisis ranked high.
Shift toward Financial Services and High Tech Beginning from 10 Years Ago: In the 2014 ranking, there were signs of change, with M&A Capital Partners taking the No. 1 spot, although several TV giants were still among the top-ranked companies. The trend became more pronounced in the 2019 rankings, when M&A Capital Partners paid out an average of 31.1 million yen (US $211,163).
By this point Keyence was in second place, with an average annual salary of more than 20 million yen ($136,000). On the other hand, Fuji Media Holdings, which held the top two positions until 2014, fell to 36th place. During this period, new companies with generous compensation packages emerged and overtook the television broadcasters.
The financial industry, general trading companies, and semiconductor-related companies also began to generate stable profits and established themselves at the top of the high annual salary rankings.
Why it matters: A look back at past high annual salary rankings reveals a dramatic shift among the leading players. The narrative of how Japan's once high-flying television broadcasters, which used to attract and retain top talent with outsized pay packages, have largely been relegated to a lower position is, essentially, the same story as how global financial services firms and U.S. high-tech giants now lead the way in average payouts.
By the numbers: To illustrate how Japan's once-dominant broadcasters have largely relinquished their once-superior position at the top of the corporate pay structure, companies such as TV Asahi Holdings Corporation (株式会社テレビ朝日ホールディングス) were highlighted. Twenty years ago such companies were the place to be for those seeking high salaries.
In 2009, the situation was much the same.
Television broadcasters began to lose their top position about a decade ago, as domestic financial services firms became more competitive in terms of average annual salaries.
Shortly before Covid, broadcasters had essentially relinquished their former leadership position.
While Toyo Keizai has yet to publish an updated version of the same rankings for 2024, another source, Kyujin Box Salary Navi, circulates similar data.
Because some may be curious about how the top Japanese companies compare to foreign firms that operate in Japan, another site, openwork, publishes similar information. As you might expect, Wall Street investment banking firms and some members of the Magnificent 71 dominate this list.
Not a single Japanese television broadcaster remains on this list. In fact, there is only one Japanese company in the top ten.
Commentary: First, it is worth noting that the overall numbers are significantly higher today than they were 20 years ago.
Also, the proverbial "devil is in the details," as it would be better to compare median annual compensation levels rather than average annual salaries. Particularly in some of the financial services firms, the cohort of "big dogs" at the top of the food chain is likely to have an outsized effect on the averages. However, such data is hard to come by.
When converted to US dollars, the average annual salaries even at some of the top Japanese employers appear to be somewhat low. While there are a few exceptions, such as M & A Capital Partners, it appears that Japanese firms cannot compete with the highest paying foreign companies operating in Japan in attracting top talent with lucrative pay packages. If the top foreign investment banks and the members of the Magnificent 7 are included in the ranking, not a single Japanese television broadcaster would remain in the top ten.
However, even the top foreign companies seem to be able to attract top talent in Japan with compensation packages that are much lower than what they pay in the U.S. The average annual salary at Facebook Japan is currently 20,960,000 yen ($143,000). According to the Wall Street Journal2, in 2021, Facebook, whose parent company is Meta, reported that its median employee earned $292,785. Converted into JPY at the current exchange rate of 146 JPY/USD, that would be 42.7 million JPY!
If the intention is to maximize your earnings, while average annual salary rankings are a good place to start your job search, there are, of course, many other factors to consider when seeking employment in Japan. There are many other forms of monetary compensation, such as bonuses, commissions, profit-sharing programs, stock options, and overtime pay. In addition, non-monetary compensation, including flexible work arrangements, professional development, paid time off (PTO), and many other perks cannot be overlooked. Beyond these tangible benefits, job security, recognition and appreciation, career advancement opportunities, and overall work-life balance may outweigh salary for some.
However, unlike a generation ago when the nation's television networks paid the highest salaries, times have changed. Now there are other industries for potential high earners to consider.
Link to Japanese Source: https://toyokeizai.net/articles/-/796398
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https://www.businessinsider.com/us-companies-that-pay-workers-more-than-100000-2022-6
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Unveiling the Real Japan: An American Expat's Inside Look | Hot takes, commentary, and unfiltered insights on life as a foreigner in Japan.
I think I was fortunate. My father taught me when I was still at school that job satisfaction was more important than financial considerations. I can't think of anything worse than trying to hold down a job I didn't enjoy just because it paid well. The result was that I really enjoyed my career, made a comfortable living, retired at 55 and never worried about what other people were making. I guess each of us has their own priorities.
Banks, investment, financial services... In other words, people are paid top money to play with other people's money and are often rewarded even when they fuck up.
My utopia is a world where the top earners are teachers, doctors and nurses, care givers. Even investigative journalists. No, okay, that's a little bit too much.