Report: Sony Execs to Take Pay Cut, Forgo Bonuses

Prior to Sony reporting its consolidated results for the fiscal year ending March 31, CEO Kazuo Hirai and other executives will not be taking bonuses this year, according to the Wall Street Journal.

They may also take a 50 percent pay cut this year, according to the report. Sony's exit from the PC business as well as consumer disinterest in physical media such as DVDs and Blu-ray discs are the main reason for these reductions in pay and bonuses.

Sony announced it plans to divest its PC business and exit the PC market in February of this year. The company predicted a 30 billion yen expense for the fiscal year related to this exit strategy. The company also predicts 25 billion yen in impairment charges for overseas disc manufacturing, that has slowed down due to the rising popularity of digital media and downloadable content and the decline of interest in physical media.

Sony will share its full consolidated results for the fiscal year on May 14. It is expected to report a net loss of 130 billion yen ($1.27 billion), an adjustment from February's projection of a 110 billion yen ($1.07 billion) loss. The forecast for operating income is now 26 billion yen, a decrease of the previously expected 80 billion yen.

Source: Polygon

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  1. 0
    axiomatic says:

    I wish the upper management at my company would fall on their swords like this just a little. (Think largest PC manufacturer in the world.)

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