Organizational reward systems based on rank order tournaments are used throughout the world. Still, the tournament structures applied in different countries differ substantially: While in the U.S., promotion tournaments are the most prominent, Japanese organizations predominantly make use of bonus payment tournaments. In our paper, we ask why tournament structures might have evolved so differently in the two countries. Referring to recent advances in tournament theory showing that Japanese bonus payment tournaments dominate U.S. type promotion tournaments if employees are sufficiently risk-averse, we search for evidence that might hint at a higher degree of risk-aversion of Japanese as opposed to U.S. employees. Having identified cultural as well as institutional factors that indeed might foster a higher degree of risk aversion on the part of Japanese employees, we render one potential explanation why tournament structures in Japan differ from those in the U.S.. To the extent that institutional factors are currently changing in Japan, we expect to observe changes in tournament structures as well. We conclude by discussing the recent changes in Japanese institutions and culture and their potential implications for the future use of tournament structures.