Hirai and Stringer take pay cuts
Sony bosses see pay packets and bonuses fall by up to 15 per cent
Sony Corp. CEO Howard Stringer and Sony Computer Entertainment chairman Kaz Hirai have both agreed to pay cuts following the company's third annual loss in a row.
Stringer's salary and bonuses were reduced from ¥408 million ($5.1m/€3.5m) in 2010 to ¥345 million ($4.3m/€2.9m) for the year ending March 31, 2011 - a fall of 15 per cent.
Hirai has seen his income fall from ¥110 million ($1.4m/€0.9m) to ¥101 million ($1.3m/€0.8m), excluding stock options.
Sony had previously suggested an 11 per cent pay cut for board members and executives in general. From last year all Japanese companies have been required to report executive compensation packages if they exceed ¥100 million.
"This might be a reflection of Sony’s desire to say 'we're taking a hit for this ourselves, and feel the pain as well as our shareholders and customers,'" said analyst Paul Hodgson to Bloomberg.
Following the Japanese earthquake and PlayStation Network security scandal, not to mention increasing competition from Apple and Samsung, Sony recently experienced its widest annual net loss in 16 years and admitted that its current operating profit will be eroded by around $2 billion.