Dozens of Sony executives foregoing bonuses - Report

The top 40 managers at Sony are foregoing bonuses; the payout is estimated to be worth $10 million.

by

Forty executives at Sony will not be receiving bonuses this year in a bid to combat the company’s financial loss, The Raw Story has reported. Among those who are foregoing the bonus is chief executive Kazuo Hirai.

A Sony spokeswoman said that the move was "due to severe business circumstances, including stagnant performance in the electronics sector."

The payout is estimated at 1 billion yen ($10 million) by the Nikkei Business Daily.

In the previous year, seven Sony executives voluntarily gave up their bonuses. The organisation is also initiating a restructure, which includes thousands of job cuts.

Just last month, Sony doubled its predicted earnings for the financial year ending March 2013. The sale of the New York City-based headquarters and the City Osaki office in Tokyo netted the company $1.1 billion and $1.19 billion, respectively. Sony conducted the sales as part of a wider initiative aimed at strengthening its corporate structure and returning to a profit.

Sony will release its full earnings report on May 9.

Discussion

330 comments
Yulaw2000
Yulaw2000

Nintendo did a similar thing so respect to both of them.

When appropriate, perhaps executives in western companies should follow suite, rather than focussing on firing employees.

blaze_boy30
blaze_boy30

Poor execs. How will they ever live without their bonuses? They'll have to settle for just getting a pay check. Bummer.

twisted_outlaw
twisted_outlaw

i like reading comments about people complaining about other people having money, like they got handed their jobs, and didn't work for it. How about get off your keyboard, and get a life. And a job while you're at it? =)

csward
csward

Those bonuses are nothing compared to the value of stock given to them by Sony every year. Still, it is a nice gesture, but they're selling off major assets and cutting jobs. At this point, it's hard to tell if they will turn it around or if this is buying time until they  become a software publisher like Sega. Only time will tell..

e5115271
e5115271

10 million divided by 40 people. That's $250,000 dollars EACH!? Damn. That's a hell of a bonus.

crunchb3rry
crunchb3rry

I bet they buy Vitas with that saved cash. Inflate the sales numbers.

Double_Wide
Double_Wide

OOOOOH! So that's where all that potential R&D money that could've went into giving us BC on the PS4 went.

NICE!

Emoboii93
Emoboii93

Sony seems to have forgotten that We buy hardware for video games. 


They just keep making glorious pieces of hardware with no games to start with.


And it takes until the system is old to get good games


Here is an idea. In order to entice gamers into buying premium hardware early on, Make good games with an easily programmable system

Why buy amazing hardware if nothing Represents it!


Why wait until it is no longer impressive to release worthwhile games.

It drives me crazy and sony keeps doing it. Shesh!.

Aphyosemion
Aphyosemion

Executives are quoted as saying, "We have so much money already that there is a real risk we will be buried under an avalanche of cash.  We are passing on our bonuses just long enough to find somewhere to put it all.  Sorry to hear you couldn't even pay your rent last month.  That sucks, brah."

thorn3000
thorn3000

oh my god! super-rich people not getting their bonuses?! omg! that company must be really going downhill and cannot be saved anymore!!....not like EA which still has millions to pay to their formed CEO, which shows that you are still a healthy company attractive to many experienced "managers" and "executives"...but Sony? no, they're done and dusted, no "experienced executive" would want to work with them without any gold buttkicks going on... (yes my post is a whole load of satire on todays capitalistic world)

quantumtheo
quantumtheo

Why use the newspeak of restructuring? Just call it massive lay-offs, cuz that's what it is!

KamuiFei
KamuiFei

Sony's hit a few rough patches the past few years, but I think they'll bounce back eventually. They just can't screw up with the PS4.

elancion
elancion

sony still one of my favorite brands ,not just talking about the ps3 either.

lamprey263
lamprey263

Sony has a long way to go before it returns to being profitable. To those that claim they're "in the black" again, their "profits" are expected to be $400 million for the year, and considering they raised $2.3 billion in the sales of their US and Japanese corporate headquarters, $1.2 billion in the sales of their M3 shares, and $1.9 billion in convertible bonds, that's $5.4 billion they earned through the sale of their assets. That means Sony still has a problem earning revenues through the sale of their products and services and that leaves a $5 billion deficit to their operating costs. That gap has yet to be filled, and until that gap is filled Sony has to keep selling assets to remain functional.

Last years gap between their assets and their liabilities was $25 billion, this years data will probably show it like $19/20 billion gap between liabilities and assets. At this the gap between their liabilities and assets shrinks by $5 billion a year, at this rate I give it another 4 years until the company is in insolvency then they're royally screwed.

If their executives are not taking bonuses it's probably to preserve the integrity of their image, after all they probably don't want to be remembered as getting fat off of bonuses while the company crashed and burned around them.

hadlee73
hadlee73

Kaz won't be able to buy that new tie he wanted :P

DiscGuru101
DiscGuru101

Sony has been struggling since 2006. Their software sales have been overall very poor for PS3. They overcharge for electronics that aren't very reliable. PS4 is probably their last hope.

CMakaCreative
CMakaCreative

Sony needs to competitively price their other stuff (TV, computers, and other electronics). I don't believe that their products are so superior over the competition that they need to be priced so much more. But then again I haven't owned anything of the Sony brand other than their gaming devices in a long time.

nurnberg
nurnberg

That's common sense.  Struggling companies should never pay bonuses to their executives.  I am really sick of corporations going bankrupt then the top executives are rewarded with huge bonuses for screwing the company.

cuddlyfuzzle
cuddlyfuzzle

That's $250,000 per executive. Well isn't that nice of them? What's the point of this article anyways? I already know Sony managers are f**king rich!

SiLenTWarrior29
SiLenTWarrior29

as ms milks their blind fanboys through their products and yet they still seem to follow what they prefer than what the consumers want. While Sony after the attacks from those damn hackers and the terrible tsunami disaster lost a lot... from money to the trust of some of their loyal fans. This year Sony is trying toturn things around and with the ps4 I'm liking what they did so far.. at least they are listening to their fans.

HaRdNiPs
HaRdNiPs

i think sony should sell some assets in the mobile division, apple has that locked pretty much same goes for tablets. as for tvs i think they should lower the prices so they could compete with lg and samsung not with pixel count but price.

EmperorSupreme
EmperorSupreme

Actually Sony has done a complete turnaround since they got rid of Stringer, Kaz probably deserves the bonus. But I respect him and his team are passing on it.

Valen_Ca
Valen_Ca

I wonder how long it will be before they jettison most of their none Playstation related consumer electronics businesses, their TV's aren't doing so hot and I can't imagine their mobile phone or PC divisions are doing much better.

twisted_outlaw
twisted_outlaw

@csward Sega was only into games. Sony is losing money off cameras, HDTVs, and things like that.

griffy2013
griffy2013

@Emoboii93 So true.  I never thought I would see the day when hardware is becoming pointless based on completely garbage software.

karenwen
karenwen

@KamuiFei People were saying the same thing when the VITA was coming out. Lots of interest, but Sony somehow screwed things up prior to release, and the lack of top-tier games only made things worse. It was almost like the PS3, but that has bounced back for the most part. I just hope they learned from those blunders this time around.


OldKye
OldKye

@RubMyDucky Lol your just testing out the lack of a dislike button on Microsoft fan's hehe.

Some angry kid is furiously clicking the empty space where down vote use to be. O7 friend

LindBergh2007
LindBergh2007

@lamprey263  Give or take, two.

20 years to the day, Playstation launched, Sony as a whole could be filing for Chapter 11.

DukeMagnum
DukeMagnum

@lamprey263 

This doesn't sound right... but I don't know enough about Sony's finances to dispute it.

DukeMagnum
DukeMagnum

@DiscGuru101 

Disagree in terms of reliability. I've never had a problem with a Sony anything, other than game consoles... and everyone skimps there because they take a loss on hardware and they want to take as small of a loss as they can so they cut back on build quality.

DBS311
DBS311

@nurnberg I hear ya and am not arguing, but I find it funny how the media today attempts to brainwash we, the people, into hating corporate executives.  When was the last time you heard ANYONE argue or complain about athletes getting paid while their team fails......or even worse, when they get their guaranteed money while riding the bench???  It's NOT just corp execs.

TheExxorcist
TheExxorcist

Whats Funny is Samsung makes apple Retina display...

horizonwriter
horizonwriter

@HaRdNiPs I agree on all parts of that statement, especially the lowering of the cost of an hdtv from them.

OldKye
OldKye

@The_Gaming_Baby Nu-uh I don't even get out of bed for less then $100,000 which is probably why i never get out of bed lol.

hatieshorrer
hatieshorrer

@EmperorSupreme  

Turn around as in one of the biggest electronics companies in the world to a company that hasnt made a profit in five years.

lamprey263
lamprey263

@DukeMagnum @lamprey263 

Sony sells Tokyo office building for $1.2 billion - http://www.joystiq.com/2013/02/28/sony-sells-tokyo-office-building-for-1-2billion/

Sony sells NYC office building for $1.1 billion - http://www.nytimes.com/2013/01/19/nyregion/1-1-billion-deal-is-reached-to-buy-sony-building.html?_r=0

Sony sells $1.2 billion in M3 shares - http://www.bloomberg.com/news/2013-02-20/sony-predicts-115-billion-yen-gain-after-selling-stake-in-m3.html

Sony issues $1.9 billion in convertible bonds - http://www.bloomberg.com/news/2012-11-14/sony-to-sell-1-9-billion-bonds-to-expand-sensors-repay-debt.html

Link to Yahoo Financials Sheet on Sony - shows last year's total liabilities subtracted from last year's assets to be $25 billion, this year it could be under $20 billion considering their shrinking assets from links 1 through 4 - http://finance.yahoo.com/q/bs?s=SNE+Balance+Sheet&annual

Lastly, "When a Company's Liabilities Exceed Its Assets It Is Considered to Be?" - http://www.ask.com/question/when-a-company-s-liabilities-exceed-its-assets-it-is-considered-to-be - "When a company's liabilities exceed its assets, it is considered to be insolvent. This is whereby the company is unable to pay its debts and therefore not being able to continue operation as a business."

godzillavskong
godzillavskong

I concur. Several of the Sony products I own wörk and haved worked wonderfully. I have a 46in Sony Bravia LCD in my sons room that's been workin fine for over 8 years. I wouldn't buy their car audio though. Mainly their amps or subs.

Emoboii93
Emoboii93

@DukeMagnum @DiscGuru101  If sony's hardware is unreliable. What does that make the original 360?.

Pretty bomb explodes on the inside in a short time. all of them. no exceptions. lol


Yomigaeru
Yomigaeru

@frylock616 @cuddlyfuzzle I've never heard the term "jaggaloon" before...and it made me lose my #$@&. Good on you for making me laugh unintentionally.

EmperorSupreme
EmperorSupreme

@hatieshorrer @EmperorSupreme 

Turnaround as in probably going to report a profit this quarter, turn around in that they overtook Xbox in sales, turn around in that they have restructured their entire business, turn around in the growth in their stock price over the last year. 

eric_neo3
eric_neo3

@lamprey263Nice find,

So basically for every dollar they have at the moment they owe 80 cents of that to someone (A:L), that's pretty bad. 

If you check their cash flow they only made 16,656,000 after expenses yet they have a short term liability of 35,000,000. When that becomes due with the cash & stock they have on hand they only have 26,656,000/35,000,000 = about 76% of the owed amount.

That's really really bad.

DukeMagnum
DukeMagnum

@lamprey263 fair enough. i knew about them selling office buildings, but i didn;t realize their total assets vs liabilities was that bad. they've got a couple years to turn it around though, or at least break even and go from there.

DukeMagnum
DukeMagnum

@Emoboii93 @DukeMagnum @DiscGuru101 

lol I'm not saying MS makes any better hardware, they just weren't in the topic of discussion, but since you brought it up... 360 hardware reliability is god awful. I think the failure rate on the first model 360s was over 50%, and that's just unacceptable and it cost them over a billion dollars, if I recall correctly.

OldKye
OldKye

@Yomigaeru @frylock616 @cuddlyfuzzle I had to look it up too^^ laughing so hard.

"1.Jagaloon: Any one adult person who engages in acts of a mentally retarded child. Someone who clearly demonstrates a lack of commitment to maturity and the responsibilities that come with it.

Dr. Doback in Step Brothers to his 40 year old son living at home who cant get a job or act like an adult:
"You Jagaloons! You're FAILURES!!

2.Jagaloon: The guy in a bar who wears a (pink) polo shirt, two sizes too small, with a popped collar; and probably drove there in a Honda Civic.

3.Jagaloon:A small child that acts crazy/retarded.

Noah and Jacob are being real jagaloons!!!"

Urban dictionary is fun.