Thoughts on the Lifetime Earnings Ranking

I came across some very interesting data in this month's Toyo Keizai Online titled "Lifetime Earnings Ranking [National Edition]."

While the average lifetime earnings of a typical salaryman are said to be around 240 million yen, the top 10 companies are hitting numbers that are in a completely different dimension.

In this post, I would like to write about the background behind these astonishing figures, the reality of foreign-affiliated companies that do not appear in the rankings, and finally, my thoughts on "money and time."

The background behind the rapid salary increases in recent years

Looking at the top of the rankings again, M&A Capital Partners in 1st place is estimated at over 900 million yen. Integral in 2nd place is about 900 million yen, and Keyence in 3rd place is about 800 million yen—an overwhelming amount that is 3 to 4 times the average.

In fact, the salaries at these top companies have jumped even higher in the last few years. When I asked AI to look into it, there was a clear reason for this.

As for how much pressure the employees working at these companies are under and how much they are working, since they are receiving such high salaries, they are naturally producing results that correspond to them.

The reality of "foreign-affiliated companies" that don't appear in the rankings

Now, there is one thing I notice when looking at this ranking. It is that there are no "foreign-affiliated companies" in it at all. Since foreign companies are unlisted in Japan, they have no obligation to submit securities reports, so they do not appear in such data.

World-leading companies like Apple, Google, Amazon, and Meta are not included in the ranking. Furthermore, all four are limited liability companies (Godo Kaisha), not joint-stock companies (Kabushiki Kaisha). There are many advantages to being a limited liability company, after all.

I used to work for an American-owned pharmaceutical company. The big bosses seemed to be paid accordingly.

When I asked AI, it replied that the lifetime earnings of foreign-affiliated pharmaceutical companies are significantly higher than the general average (240 million yen), at about 400 million to 500 million yen. In addition to a high base salary, the proportion of target bonuses and incentives is far greater than in Japanese companies.

That was the answer. That's quite a lot. I retired early, so I didn't get that much, though.

I see, I've started to feel that many of my colleagues quit early because they retire early once they've earned about 200 to 300 million yen in lifetime earnings.

What matters is not how much you earn, but when you retire.

Reflecting on the numbers in the rankings and the tough environment of foreign-affiliated companies, I have some renewed thoughts.

A high lifetime income is certainly a powerful weapon. However, I believe the true goal is not "earning a lot of money" itself, but obtaining the right to use your own time freely that lies beyond that.

No matter how well you earn, if you raise your standard of living to match it, you will never be able to escape the rat race where you have to keep working forever.

I retired early in 2022, and I am now in my fourth year of FIRE life. I am not just consuming the savings I earned during my active career; I am living my current peaceful life thanks to the interest income I receive from planned bond investments.

The ultimate luxury of being "time-rich"

I feel that being "time-rich" is more of a luxury than being "money-rich." Even if your lifetime income is the average of 240 million yen, if you improve your financial literacy from a young age and steadily build your assets, financial independence is fully achievable. By doing so, you can become time-rich.

I keep my body in shape with morning walks and exercise, immerse myself in guitar and drum practice, sometimes enjoy spontaneous day trips, and I plan to spend time relaxing on the beaches of Cebu at the end of this month.

As I savor the freedom of being "time-rich," I can look at those ranking numbers of hundreds of millions of yen with amusement, as if they were entertainment from a distant world.

I wonder what everyone feels when they see a lifetime earnings ranking in a magazine article, and what kind of life goals they envision.