Representative Director - Risks without Rewards

[Paulo]

I became 代表取締役社長 a while back now and there were some benefits I had to give up such as employment insurance, additional healthcare cover, company DC constributions and so on. It also means that all decisions about comp go through the board on an annual basis rather than defined company policies. That said though, it was an easy decison for me and one that I am very glad I made and I certainly feel it opened other doors with further career opportunities down the road.

[Moneymatters]

I became 代表取締役社長 a while back now and there were some benefits I had to give up such as employment insurance, additional healthcare cover, company DC constributions and so on. It also means that all decisions about comp go through the board on an annual basis rather than defined company policies. That said though, it was an easy decison for me and one that I am very glad I made and I certainly feel it opened other doors with further career opportunities down the road.

Thanks Paulo. I’m glad you had a positive experience.
Just curious. Did you stop seeing the deduction for employment insurance on your pay slip?

I’m convinced the structure of my comp won’t change as a result. I’m probably going to ask for something to say I’m governed by the employee handbook unless otherwise expressly agreed.

[Paulo]

Did you stop seeing the deduction for employment insurance on your pay slip?

Certainly did. I don't pay that anymore.

[torata]

I became 代表取締役, kind of by default, for a small company I was a senior manager at when the then CEO and代表取締役, who was terminally ill, decided to give back her gaijin card to immigration on the spur of the moment when she went to Europe to spend more time with her boyfriend. It was only after all the paperwork was signed that it became apparent that I was now personally responsible for the not inconsiderable debts that had built up under her stewardship. As she refused to relinquish full operational control, I left.

When I first came to Japan, I worked for a company that ultimately went bankrupt. As things were going downhill, the CEO (or possibly her husband, I can't remember), who had been 代表取締役 for more than 20 years, suddenly relinquished it to a senior Japanese manager. Within a few months, he'd left the company. I guess that he realised that he was on the hook for the debts.

Personally unless I had full ultimate control, or was covered by some kind of insurance, I'd not be 代表取締役 again. My Japanese father-in-law, who built up his own business, asked me when I said I was becoming RD, "Do you trust these people implicitly?"

torata

[Moneymatters]

I became 代表取締役, kind of by default, for a small company I was a senior manager at when the then CEO and代表取締役, who was terminally ill, decided to give back her gaijin card to immigration on the spur of the moment when she went to Europe to spend more time with her boyfriend. It was only after all the paperwork was signed that it became apparent that I was now personally responsible for the not inconsiderable debts that had built up under her stewardship. As she refused to relinquish full operational control, I left.

When I first came to Japan, I worked for a company that ultimately went bankrupt. As things were going downhill, the CEO (or possibly her husband, I can't remember), who had been 代表取締役 for more than 20 years, suddenly relinquished it to a senior Japanese manager. Within a few months, he'd left the company. I guess that he realised that he was on the hook for the debts.

Personally unless I had full ultimate control, or was covered by some kind of insurance, I'd not be 代表取締役 again. My Japanese father-in-law, who built up his own business, asked me when I said I was becoming RD, "Do you trust these people implicitly?"

torata

Thanks for sharing. That last line is key and probably my biggest concern. I'm really only doing this so I'm better placed to represent the interests of the local team.
Sorry if the light reflecting off my halo is dazzling some of you..
On the plus side I've got the liability insurance in place up to $5mil.
And whilst I don't trust them (our owners) as far as I could throw them, we don't have much local exposure commercially.
I've been a director here a long time so know we don't have skeletons and we are audited by one of the top 4 each year.

I think I've agreed a compromise to losing the unemployment insurance, even though they keep deducting it each month..

[RetireJapan]

I think I've agreed a compromise to losing the unemployment insurance, even though they keep deducting it each month..

I get a small salary from my wife's school, but apparently am not eligible to join unemployment insurance because we live together. Still gets deducted every month...

[Moneymatters]

I think I've agreed a compromise to losing the unemployment insurance, even though they keep deducting it each month..

I get a small salary from my wife's school, but apparently am not eligible to join unemployment insurance because we live together. Still gets deducted every month...

Interesting. Wonder why.. Another poster in this thread says they stopped getting the deduction once they became RD.

Our payroll agent has been sitting on the query since last year so they’ve barely even begun the process of ignoring me. Should they respond before I early retire I’ll report back.

[TokyoWart]

I think I've agreed a compromise to losing the unemployment insurance, even though they keep deducting it each month..

I get a small salary from my wife's school, but apparently am not eligible to join unemployment insurance because we live together. Still gets deducted every month...

Interesting. Wonder why.. Another poster in this thread says they stopped getting the deduction once they became RD.

Our payroll agent has been sitting on the query since last year so they’ve barely even begun the process of ignoring me. Should they respond before I early retire I’ll report back.

I still think they should not be deducting that in your case. I paid the unemployment insurance before I became a corporate officer, it stopped being withheld the month I became a corporate officer, and then started to be withheld again the month I reverted to being a regular employee. My employer is a large-ish Nikkei 225 listed company and they are pretty careful about these employment rules.

[Moneymatters]

I get a small salary from my wife's school, but apparently am not eligible to join unemployment insurance because we live together. Still gets deducted every month...

Interesting. Wonder why.. Another poster in this thread says they stopped getting the deduction once they became RD.

Our payroll agent has been sitting on the query since last year so they’ve barely even begun the process of ignoring me. Should they respond before I early retire I’ll report back.

I still think they should not be deducting that in your case. I paid the unemployment insurance before I became a corporate officer, it stopped being withheld the month I became a corporate officer, and then started to be withheld again the month I reverted to being a regular employee. My employer is a large-ish Nikkei 225 listed company and they are pretty careful about these employment rules.

Noted. My firm is well placed in FinTech space but certain parts operate like they are run by the crew of the Millennium Falcon or whatever the ship was in Space Balls. I'm just giving them some space to work it out themselves..