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Satoru Iwata's salary to be cut by 50 per cent

Satoru Iwata's salary to be cut by 50 per cent

Wed 29 Jan 2014 10:39am GMT / 5:39am EST / 2:39am PST
HardwarePublishingDevelopment

Miyamoto takes 30 per cent hit, remaining directors get 20 per cent cut

Nintendo president Satoru Iwata will slash his salary by 50 per cent following the publication of Nintendo's nine-month financial results.

According to a report from AFP, While Nintendo had warned investors of its drastically revised estimates earlier in the month, its nine-month report, published today, confirmed the disappointing performance of the Wii U over the holiday period. As a result, Iwata will take a 50 per cent reduction in pay for the next five months - a period that will see Nintendo's balance sheet return to the red for its full-year results.

And Iwata will not be alone. According to Siliconera, Shigeru Miyamoto and Genyo Takeda, both representative directors at Nintendo, will have their salaries cut by 30 per cent, while the remaining directors will all have their pay reduced by 20 per cent.

Nintendo's executives also took a pay cut during the 3DS's initial struggles. However, it remains to be seen whether the company can rescue the fortunes of the Wii U in the same manner.

From GamesIndustry.biz Recommendations by Taboola

12 Comments

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,320 2,599 1.1
Popular Comment
Here in the US, they'd be getting raises, bonuses, stock options and a bigger pension.

Posted:A year ago

#1

Morville O'Driscoll Blogger & Critic

1,666 1,572 0.9
Popular Comment
In the UK, Big Business would complain that they were obviously not getting paid enough, and what did everyone expect from people with such small salaries anway? You get what you pay for, and obviously their small salaries meant they were not paying attention to the Big Picture.

*sigh*

Anyways... You've got to respect people who not only take pay-cuts, but do so without being prompted by shareholders or activist investors.

Posted:A year ago

#2

James Boulton Tools & Tech Coder, Slightly Mad Studios

136 172 1.3
Respect where its due. As said, this isn't normal behaviour...

Posted:A year ago

#3

Nicholas Pantazis Senior Editor, VGChartz Ltd

1,022 1,473 1.4
Popular Comment
@ James It's more normal for Japan than you would think. When a business struggles, it's not uncommon for executives to take responsibility and take cuts themselves as penance before any layoffs or damage to any other employee's salaries are applied. There's a culture of corporate loyalty there that doesn't exist here.

That said, it's not as strong as it used to be. Sony has never done this in my living memory (and they've certainly had financial woes that would warrant it). They are one of many Japanese companies that have become extremely Americanized with very high paid executives and a similar corporate structure.

Posted:A year ago

#4

Thomas Dolby Project Manager / Lead Programmer, Ai Solve

345 307 0.9
I have a lot of respect for actions like this, especially like what Morville says, when it's done without being prompted (at least publicly anyway). For politicians and upper management of such large corporations there really needs to be some kind of real world consequence for poor performance or decision making. If these people are allowed to make decisions that negatively affect the people or their employees they need to feel the impact of what they're doing.

I kind of feel bad for them when there are some companies (banks as an easy target) that fail because of shady business practices with no penalty but these guys take a pay cut due to actions that were well intentioned but unfortunately weren't handled correctly.

Posted:A year ago

#5

Christopher Ingram Editor-at-Large, Digitally Downloaded

52 45 0.9
I have much respect for Nintendo for doing this.

Posted:A year ago

#6

Petter Solberg Freelance Writer & Artist,

72 50 0.7
Good to see the guys at the top take part of the responsibility for those red numbers.

Posted:A year ago

#7

Ben Hearn Junior Technical Artist, Starbreeze Studios

4 3 0.8
Glad to finally see some responsible action taken upon themselves due to sliding revenue rather than taking a 20 mil bonus then quitting soon after

Posted:A year ago

#8

Christopher Bowen Editor in Chief, Gaming Bus

466 763 1.6
Japan's drastically different, culturally, than America. Remember, in some circles in America, taking that $20m golden parachute that Ben talks about would be a *celebrated* move. The culture doesn't allow that in Japan; it'd be highly shameful, and there, that matters.

As a company move? I don't think Iwata or Miyamoto are going to be living on instant ramen, so this doesn't mean much other than for PR reasons, but I have to ask: do they have stock options? I'm a little soft on the how the TSE works.

Posted:A year ago

#9

Sasha Yelesin Student

54 35 0.6
Glad to see the higher ups taking pay cuts instead of laying off employees or shutting down studios.

Posted:A year ago

#10

Shane Sweeney Academic

434 507 1.2
Even after the disaster of the Virtual Boy Nintendo simply moved Gunpei Yokoi to another area of the company where he had no ability to action any new ideas he had. (Or so the legend goes)

Such a different culture. As Rob Fahey pointed out, this could be also because Nintendo is largely owned by a single family but Sony Japan do very similar especially considering how Ken Kutaragi retired.

Posted:A year ago

#11

Brook Davidson Artist / 3D design

171 434 2.5
Ya, You would never see this type of thing go down in the US. It simply doesn't happen. The US, When companies do bad, they lay off and reduce pay on all their lower leveled employees and would probably go overboard just to increase their own pay.

I always find cultural differences very interesting and in some instances wonder why things are not like this everywhere. To me it makes more sense.

Posted:A year ago

#12

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