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Sony execs give up bonuses for second year

Sony execs give up bonuses for second year

Thu 02 May 2013 8:10am GMT / 4:10am EDT / 1:10am PDT
PublishingDevelopment

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.

8 Comments

Kingman Cheng
Illustrator and Animator

949 166 0.2
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.

Posted:A year ago

#1

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
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.

Posted:A year ago

#2

Nicholas Lovell
Founder

185 170 0.9
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.

Posted:A year ago

#3

Adam Campbell
Associate Producer

1,154 939 0.8
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.

Posted:A year ago

#4

Paul Jace
Merchandiser

902 1,332 1.5
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.

Posted:A year ago

#5

Paul Johnson
Managing Director / Lead code monkey

810 1,013 1.3
It's almost like, I dunno, the Japanese still see performance bonuses as being based on performance?

Imagine!

Posted:A year ago

#6

Bruce Everiss
Marketing Consultant

1,692 594 0.4
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.

Posted:A year ago

#7

Andy Samson
QA Supervisor

231 178 0.8
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.

Posted:A year ago

#8

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