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 whathifi.com 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.

Latest in AV
Google TV Streamer on a white background
Google TV's latest update adds a secret feature that could hint towards new hardware
iPhone 16e in black and white on a white background
Apple Event 2025: the new iPhone 16e (not SE 4), but no new HomePod or AirPods
LG QNED91 65-inch LCD TV
HDMI 2.2: everything you need to know about the new TV connection
Sky Glass Gen 2 on stand with Rewind logo
Rewind: hi-fi treats from McIntosh and TEAC, Sky Glass TV Gen 2, Apple launch announcement and more
Apple HomePod 2
3 Apple audio and home cinema products we want, but probably won't see, at the iPhone SE 4's anticipated launch
Samsung HW-Q990F soundbar package on a grey backdrop sitting below a TV
Google and Samsung’s Dolby Atmos rival should be coming to Android TVs, too
Latest in News
Musical Fidelity B1xi
Musical Fidelity's new stereo amplifier houses HDMI ARC and a built-in phono stage
A close-up of the FiiO FT7 headphones' earcups.
FiiO's FT7 flagship headphones take the fight to pricier rivals
A grey WiiM Vibelink Amp on a wooden cabinet between two bookshelf speakers.
The WiiM Vibelink Amp is WiiM's first integrated amp with no streaming elements
Q Acoustics 3050i
Save £650 on this five-star Q Acoustics 5.1 home cinema setup
Optoma Photon Go on white background
Optoma's new on-the-go projector is set to be one of the cheaper USTs on the market
Marantz Cinema 30 AVR
Our Award-winning reference Marantz AVR is still selling at its best price ever