Sony bosses agree to salary cuts as electronics turnaround target missed

Kazuo Hirai Sony

Sony bosses have agreed not to take performance-related bonuses this year, as president Kazuo Hirai (left) struggles to turn around the electronics business, according to Japanese press reports.

Despite five-figure job-losses and the closure of several factories, Hirai is reported to have made the proposal after deciding he couldn't meet his pledge to get the loss-making company back in the black for the 2012-13 financial year.

The Nikkei reports that some 10 executive officers, including the president, 20 corporate operating officers and several executives of Sony's electronics companies won't take their annual performance-related bonuses.

That will mean an effective salary cut of 30-50%, and the saving of anything up to ¥1bn (£6.5m), and will mark the biggest reduction of executive bonuses in Sony's 67-year history.

Sony's electronics business is expected to post another loss when its FY2012 results are announced. The company is due to announce its results for the final quarter of the financial year next Thursday, May 9.

Meanwhile another Nikkei report has put Sharp's shares on the slide, after it was forecast that the company will make a greater than expected net loss for the financial year just ended.

It now looks likely to have losses of ¥500bn (£3.3bn) instead of the widely forecast ¥450bn (£2.97bn), compared to last year's losses of ¥376bn (£2.48bn).

Among the reasons suggested for the extended losses are slowing demand for Sharp's display panels for the iPhone, and the ongoing under-production at the company's Kameyama display plant, which will probably require a lowering of the facility's asset value.

Sharp's shares were down 5% on the Tokyo stock exchange today, the fourth straight day of falls.

MORE: Sony flagship 2013 TV unboxing video

Written by Andrew Everard

Follow on Twitter

Join us on Facebook

Find us on Google+

Andrew has written about audio and video products for the past 20+ years, and been a consumer journalist for more than 30 years, starting his career on camera magazines. Andrew has contributed to titles including What Hi-Fi?, GramophoneJazzwise and Hi-Fi CriticHi-Fi News & Record Review and Hi-Fi Choice. I’ve also written for a number of non-specialist and overseas magazines.