Losses Prompt Sony Execs To Surrender Bonuses

[Karloff]

Losses Prompt Sony Execs To Surrender Bonuses

Sony's main electronics business has been unprofitable for a second straight year.

Kazuo Hirai and 40 of his management team will be returning their bonuses, worth something in the region of 30 to 50% of their annual pay for the year ended March 2013. This move was prompted by bad news; Sony's main electronics unit was unprofitable in 2013, for the second year in a row. Though Sony will post a profit in 2013, it was thanks to one-time gains from sale of assets - office buildings and stock holdings - and a weaker Yen, not its struggling electronics arm, which posted a loss.

The full extent of Sony's woes won't be known until later this month, when its annual results for the year will be published. This is the second time Hirai has pledged not to accept a bonus after poor financial results, but the last time Hirai did so, only a few of his fellow executives followed suit. Sony wants to expand on its camera, mobile devices and games markets, in a bid to increase Sony's consumer electronics arm after losing ground to Apple and Samsung.

Of course, this is the year of the PS4 reveal, which - or what Sony wants [http://www.escapistmagazine.com/news/view/123530-Sony-Claims-PS4-Launch-Line-Up-Strongest-in-PlayStation-History] from PS4 titles, but it'd seem that what it wants most of all from the console is a healthy profit.

Source: Bloomberg [http://www.bloomberg.com/news/2013-05-01/sony-executives-give-up-bonuses-after-loss-at-electronics-unit.html]


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[Andy Shandy]

I must admit it is rather novel to see someone not get rewarded for a perceived failure.

 

[Jumwa]

I must admit it is rather novel to see someone not get rewarded for a perceived failure.

Dammit Sony, first the Move, now this? Stop copying Nintendo!

...seriously though, that's pretty cool of Hirai. Japanese CEOs seem to have a lot more honour when it comes to stuff like this than their western counterparts. There are more than a few financial CEOs who could learn a thing or two from this.

Doesn't change the fact that they received -- or would receive -- a bonus for doing such a crappy job to begin with. They had to refuse a pay bonus voluntarily, otherwise they would've gotten rewarded for doing badly.

It's so sad when these are the best examples of corporate management we have. So sad.

 

[Gearhead mk2]

It's nice to see execs actually accept responsibility and pay some of their share when their company falls on hard times instead of screwing over the workers so they can buy another solid gold statue of their genitals. Now if only everyone that was paid too much would do this...

 

[Abomination]

Those crazy Japanese with their ethics and honour. Don't they know the real way CEOs operate is by posting a loss, cutting jobs then paying themselves a bonus large enough to have employed those very jobs they cut 4 times over?

 

[CriticalMiss]

Ah Japan, where roaming tentacles seek out women in schoolgirl uniforms, pants come from vending machines and Executives aren't total shits. It's like bizarro-world but on Earth. Now if only the West would follow in their footsteps and stop firing people further down the ladder instead of just giving themselves even more money and laughing at the poor folk.

On a slightly related note, if Sony did really badly would Kaz perform seppuku? Not that I'm demanding blood but I'm curious as to what it would take for an Exec to disembowel themselves.

 

[SonOfVoorhees]

They should lose there bonus.....they failed. Sony is expensive though their products are not great compared to other companies. They still believe in the Sony brand and charge for that name. Bit the retail electronics industry is different now.

Is this the end of PS5? I think SOny might stop console making after the PS4. They should let MS spend money making a console and just make tons of cash making games for the MS system and allow millions of gamers to play the games. Im sure (though dont know the figures) Sega has prospered from getting out of the console industry.

 

[Canadamus Prime]

You can't see it but I'm playing the world's smallest violin. Seriously you're not going to see me shedding a tear over this news. I'm not exactly sympathetic towards extremely rich people making slightly less money.

 

[BrotherRool]

This is bad news for the PS4. The best thing Sony could do would be to absorb some losses sell it below cost and build up a strong install base that will rake money in for them for the years to come. But if they're going to make a loss for a second year running, they're less likely to be willing to do that and that means the PS4 is probably going to be expensive again

 

[Adam Jensen_v1legacy]

In America, especially in banking business, you never give up your bonus. Not even when you bankrupt the company, cost thousands of people their jobs without severance pay and collapse the entire world economy. This is bad news for Sony, but good news for humanity. It makes me sick that most execs aren't obligated to do this when clearly they deserve a bullet in the head, not millions of dollars and a pat on the back.

 

[Mortuorum]

I must admit it is rather novel to see someone not get rewarded for a perceived failure.

It wasn't a perceived failure, it was a real failure. If the only reason you didn't lose money is that you sold earning assets, that's a fail.

You don't hear about it in the US as much because typically bonuses are tied to performance. Because of the way my company's Board has structured our compensation and benefits, I don't get a bonus at all unless certain financial targets are met, including net operating income. If those targets aren't met, I don't get a bonus... hence, no bonus to "surrender."

The downside of this is that it causes executive officers to focus on short-term profitability (i.e. "I get a big payday now") at the expense of long-term profitability. When you hear about companies cutting their workforce by some crazy percentage, that's what's happening; by reducing headcount (and the corresponding expenses), they're enhancing profitability... for the next few months. They don't really care that they've eviscerated the company because they're already set for life and will just move on when the real pain starts.

 

[Beffudled Sheep_v1legacy]

While I am sad that Sony has been doing poorly lately I am happy to see execs voluntarily give up their extra pay to help out.
Oh well, I hope Sony pulls through with the PS4 and starts turning a profit again without having to sell of buildings and offices and such.

 

[The Artificially Prolonged]

Cut bonuses for poor performance? I say what a novel idea

 

[The Artificially Prolonged]

Edot

Dang double post :/

 

[Entitled]

Even if the PS4 ends up being successful eventually, it will lose lose money for years before it like most consoles in their first years. That overlapping with overall busines failure, will hurt hard.

 

[SonOfVoorhees]

They should lose there bonus.....they failed. Sony is expensive though their products are not great compared to other companies. They still believe in the Sony brand and charge for that name. Bit the retail electronics industry is different now.

Is this the end of PS5? I think SOny might stop console making after the PS4. They should let MS spend money making a console and just make tons of cash making games for the MS system and allow millions of gamers to play the games. Im sure (though dont know the figures) Sega has prospered from getting out of the console industry.

 

[Baldr]

I was told by an executive at large electronic retailer, that Sony told them that they were thinking about filing for Bankruptcy and to be prepared for it.

 

[1337mokro]

OH WOE IS THEM!

Instead of making tens of millions for work that basically involves nothing but supervising other people working harder than you they will only be making millions! MERE MILLIONS! The humanity no man should be forced to make so little! I blame you! Yes all of you for this! How dare you not buy the PSVITA?! Look at what you did! These poor execs won't be able to have truffles for breakfast anymore! They will have to settle for caviar... oh the thought alone... it makes me care so little.

Whoop tie fucking doo they finally figured out how bonuses should work. If you fuck up at your job you DON'T get the bonus, that's supposed to be a fucking incentive for you NOT to fuck up. Oh you only make 1200$ an hour and you really really needed that money for your solid golden bathtub? Let me ask my empty wallet if it has any fucks to give.