Japanese brokerage giant Nomura Holdings, Inc. (NMR Quick QuoteNMR - Free Report) has reportedly cut pay for its top executives by 18% as the company struggled with a plunge in profits.

According to a Bloomberg report for the year ended Mar 2016, seven executives, including Chief Executive Officer Koji Nagai, were awarded compensation of an average of ¥166.4 million ($1.5 million) in base salary, bonuses and deferred remuneration. The pay cut marked the lowest level in three years. The report cited a document which was disclosed for shareholders on Tuesday.

Under Nagai’s leadership, the company’s performance improved in fiscal 2015. However, profits plummeted in fiscal 2016, as net income for the year stood at ¥131.6 billion, down 42% year over year. Total revenue decreased 10% on a year-over-year basis to ¥1,723.1 billion. The company had stated that while the beginning of the year was smooth, earnings environment in the second half remained challenging.

Results were primarily impacted by “market dislocation from August and lower client activity.”  Performance in the retail and wholesale slowed while asset management improved.

Earlier this year, Nagai had restructured his executive team. He further expects $700 million in cost savings in its wholesale division in an effort to make its overseas business profitable again by Mar 2017.

Nomura Holdings currently carries a Zacks Rank #4 (Sell). Some favorably placed stocks in the foreign banks space include Australia & New Zealand Banking Group Limited (ANZBY Quick QuoteANZBY - Free Report) , Canadian Imperial Bank of Commerce (CM Quick QuoteCM - Free Report) and Shinhan Financial Group Company Limited (SHG Quick QuoteSHG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

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