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Sony execs give up bonuses for second year

CEO Kaz Hirai proposes that execs respond to company's poor performance

Sony CEO Kaz Hirai has proposed that the company's executives give up their annual bonuses after a string of poor financial reports.

According to Bloomberg, which spoke to representatives from Sony Japan, Hirai has the full backing of the board. As a result, around 40 Sony executives will forego their bonuses, the second straight year in which the company's top brass has made that sacrifice.

Last week, Sony revised its fiscal-year forecast, doubling its profit expectations to 40 billion ($403m / 261m). This is a vast improvement over the 455 million loss from the previous fiscal year, but that progress has been hard won.

Since then, Sony has sold a number of major assets, including huge office buildings in America and Japan and more than $1 billion in M3 shares.

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Latest comments (8)

Kingman Cheng Illustrator and Animator 3 years ago
It's good that they do that over there, rather than people here receiving bonuses despite doing a poor job. So much respect to you guys.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.3 years ago
Sony and Nintendo have both done this for the past 2 years. Definitely seems to be a different business culture in Japan than in the west.

I applaud them.
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Nicholas Lovell Founder, Gamesbrief3 years ago
I love the way Matthew says that exectives will "forgo" their bonuses, implying an entitlement to them.

Or am I misreading. Are they entitled to bonuses but choosing not to accept them. in which case, perhaps the bonus structure is wrong.
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Show all comments (8)
Adam Campbell Producer, Hopster3 years ago
Or am I misreading. Are they entitled to bonuses but choosing not to accept them. in which case, perhaps the bonus structure is wrong.
There's usually an entitlement in the pay package when they speak of 'giving up' bonuses voluntarily.
It's good that they do that over there, rather than people here receiving bonuses despite doing a poor job. So much respect to you guys.
That's not really fair because people over here give up bonuses too, others take them. I doesn't mean that all companies in Japan see executives give up their bonuses.
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Paul Jace Merchandiser 3 years ago
I think this should be required of ALL companies that have poor performances year over year. The norm is obviously to start firing staff but if they cut bonuses they would have to cut much less staff.
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Paul Johnson Managing Director / Lead code monkey, Rubicon Development3 years ago
It's almost like, I dunno, the Japanese still see performance bonuses as being based on performance?

Imagine!
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Bruce Everiss Marketing Consultant 3 years ago
Go to companies house and get the accounts of the main UK game companies for a few years. Then plot profitability against CEO remuneration and you will be shocked.
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Andy Samson QA Supervisor, Digital Media Exchange3 years ago
I wouldn't call it sacrifice since the bonus they're getting is most likely a performance incentive. A salary cut is what they should do just like Iwata did when he took responsibility for the 3DS's poor initial sales performance.
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