Sony CEO to take up to a 50 percent pay cut

Kazuo Hirai and other Sony executives will forgo their bonuses as PlayStation company expected to post fourth loss in five years.

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Sony CEO Kazuo Hirai and other top executives at the electronics giant will forgo their bonuses, taking up to a 50 percent pay cut in the process, it has been revealed. The Wall Street Journal reports the move, which comes a day before Sony is expected to announce its fourth annual loss in five years. The company anticipates that its loss for the period will total ¥130 billion ($1.27 billion).

Part of the tough times at Sony right now involve the company's PC business, which it intends to sell off. Though the PlayStation 4 is the best-selling new console with 7 million units sold, The Wall Street Journal points out that Sony's projection to sell 20 million PlayStation devices in the 2014 fiscal year is actually lagging behind where it was six years ago by 45 percent in terms of total hardware sold.

Hirai, the former head of the PlayStation business, was named CEO of Sony in 2012. Nintendo president Satoru Iwata also took a 50 percent pay cut earlier this year, as the Mario maker struggled to reach financial projections. Check back tomorrow, May 14, for more on Sony's financial performance.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Discussion

197 comments
deadpen
deadpen

HA HA HA, I hear these CEO pay cuts and think about a CEO for a company I worked for. The company started to file bankruptcy, so he took a 50% cut on his yearly salary. Now his yearly salary was $100,000 so he went to $50,000 that year BUT he still got his $5 MILLION bonus for the year. The money isn't in the yearly income it is all in the bonus and 50% is a realistic number cause if they said 75% to 100% then everyone would figure out that this noble gesture is a joke.

chev93477
chev93477

And I'm sure gaming journalist will ignore this to make it seem like Nintendo is the only one that's "doom."

veryDERPY
veryDERPY

here's a thought. cut the music side of sony because the guys who run that is total scum.


they're not doing that well anyways

Unfallen_Satan
Unfallen_Satan

Bonuses during a loss year? This isn't school or some public service job where you might get rewarded for trying or doing your best. At least, it shouldn't be.

s_h_a_d_o
s_h_a_d_o

"Kazuo Hirai and other Sony executives will forgo their bonuses as PlayStation company expected to post fourth loss in five years."

As they should - bonuses are supposed to be performance-based.

Pupchu
Pupchu

this is a irrefutable statement and concrete proof of ouya's superiority!

Orga777
Orga777

They need to get rid of that PC business arm FAST. They should also get out of a few other industries as well. They should only be going with what works. They need to cut the excess.

joey2010
joey2010

I would give anything for new Tenchu, God of war and Tekken games for ps4. 

onixevil
onixevil

You are doing great games on either way

beuneus12
beuneus12

good thing I didn't buy them Sony shares. Didn't expect their other businesses to drag m down like that

remoticons
remoticons

lol... please xbox fanboys... make this a bad thing... comment, i will be waiting, or you know what... nintendo fanboys, come on... lets brawl!

omar_q
omar_q

Looks like the Japs should stick with the automotive industry and out of the games. 

smackdowner360
smackdowner360

This isnt gonna help at all sony is a sinking ship and its going under fast

skiggy34
skiggy34

Wow...Every week all I am hearing is bad news for Sony.  WTF??!!

jako998
jako998

You know, Even though I prefer Xbox over PS4, I don't want Sony to go under. Competition is good after all.


But honestly, Sony wouldn't be in the Position they are in right now if they just REDUCE THE FREAKING PRICE OR THIER LAPTOPS AND TVS.  Why should I buy a 600 dollar Sony tv 1080p and etc when I can find the same shit from Sharp/Panasonic/Vizio  for a better/cheaper price ??  the most Epensive TV to date is $25,000 and guess who its from ? Sony. Even if I was a Rich ( pray I do in the Near Future) I wouldn't even buy that.


I love Sony products like Camera's and Tv's but which all these Huge Price's we have to pay people will just go else where to find the same Product for less... that's why Samsung is besting Sony when it comes to TV's

mikemaj82
mikemaj82

I was going to say something sarcastic here, but then I did some research and found out the guy made $1.6 million last year. That's WAY less than most CEOs at companies make. Hell Alan Mulally made $21 million and Tim Cook $4.17 million.

RabidBurp
RabidBurp

Suddenly Nintendo doesn't seem to be doing so badly.

tommynj
tommynj

Even with the 50% pay cut there is no way Sony is recovering from this. You had a nice run but all things come to an end eventually. By the end of this year we will get the file for bankruptcy announcement I am sure.

aquoon_0nly
aquoon_0nly

For god sake, why they dont sell everything else and keep only the ps4/ps3/vita

vivvianni
vivvianni

The way MS xbox one, MS phones and Windows 8 is selling microsoft have to do more then pay cut this time next year. 

hystavito
hystavito

@deadpen  The article says they are giving up their bonuses and from the wording it sounds like that is the source of the 50% reduction.

Zloth2
Zloth2

@deadpen Often times it isn't even in the bonuses, it's in the stocks or stock options.  But even if they really do cut their pay to nothing, so what?  If you've been pulling down millions a year for several years, I should hope you've got enough of a nest egg to go without pay for a year!

Zloth2
Zloth2

@Unfallen_Satan ???  There are lots of jobs where workers get paid a bonus even when the company loses money.  The word "bonus" really got mangled in some industries, I'm afraid, to the point where they should really be called "the portion of your pay that we won't give you unless you're still here at the end of the year."

Gankstar_VX84
Gankstar_VX84

@joey2010 I'd love a Tenchu, due to an article on here I found out it was the Dark Souls guys that did the Tenchu games, not surprising really. would be awesome..

rasterror
rasterror

Yeah but Ford and Apple don't lose billions consistently for years.

bunchanumbers
bunchanumbers

@RabidBurp  Apparently 100 million of that 450 million loss went towards their secret hardware project. So its really not as bad as it sounds. 

tommynj
tommynj

@RabidBurp  Nintendo > Sony. Even with Nintendo Wii U losses they are still miles ahead of Sony. That is because Nintendo is smarter than Sony.

rasterror
rasterror

They should probably sell everything and stick to insurance and real estate.

bunchanumbers
bunchanumbers

@aquoon_0nly  Actually Vita should probably go as well. But yeah you're right. Playstation brand should probably be spun off. 

rasterror
rasterror

I know because they only made an $8.8 billion profit for the past fiscal year.

bunchanumbers
bunchanumbers

@vivvianni  Net revenue for 2013 was 77 billion. Windows 8 adoption has been on par with windows 7 adoption in spite of its UI. Their corporate divisions are strong as well. MS has little to fear as far as losses. 

aquoon_0nly
aquoon_0nly

@vivvianni i hated windows phone and windows 8. I have to yet give another chance to windows 8, but windows phone is totally crap

deadpen
deadpen

@hystavito Well to tell you the truth when I click on an article and see Eddie under the title I mostly comment on the title without reading anymore since most of it will be rumors and fluff. 


To prove that most people don't even comment on his articles I posted this around 7 pm on 05/13 and it is currently 8:25 pm (eastern time) 05/14 and my comment is the newest one. LOL

irishstanddown_
irishstanddown_

@rasterror  True, with the broad range of Sony compared to other companies it is more likely that Sony will lose more. As a designer I was always told simple is more. So with Sony focusing on computers, video game systems, sound, tv, phones, camcorders, and cameras then you are bound to have a ton of losses when one of the products start to fail.


Apple's profits come mostly from iPhones, iPads, and iPods. Their computers are much like Sony's Playstation where their profit margin is very low. But the profit margin on the other devices such as the iPhones is high and because they can sell them at a somewhat reasonable price they are able to sell a lot more.


Most people who are buying cameras and camcorders now are not casual consumers because they can get those standard on most any smart phone. Professionals will buy high end cameras such as Nikon or Cannon and videographers will buy HD video cameras...the casual market is all going to phones.


Sony should focus on TV, Sound, Playstation, and high end photo and video. I bet their expenses would be less and then they could make it simple and focus on the products that have a bigger impact to their consumers.


horizonwriter
horizonwriter

@tommynj @RabidBurp  Comparing Nintendo to Sony is like comparing a couple of pepperonis to a pizza. While Nintendo is the largest video game company and easily their primary focus, gaming is only a portion of Sony. Compare Nintendo to Sony's gaming division and you'd have a much more accurate picture.


On the whole though I agree that Nintendo has been much smarter than Sony, just not recently.

vivvianni
vivvianni

@bunchanumbers @vivvianni  

2013 not 2014...windows 8 is doing very bad. They even have to come out with windows 8.1 lol.

Divisionbell
Divisionbell

You can but I'm sure they wouldn't like it

rasterror
rasterror

So an update is now a bad thing? I guess all of those service pack updates were because MS was doing poor financially, and just doing a routine update.

bunchanumbers
bunchanumbers

@vivvianni  their results won't be posted untiil june 2014. And 8.1 isn't much different than a service pack. Actually it made 8.0 pretty good.