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Sony executives give up bonuses due to weak electronics division

Wednesday, 1st May 2013 23:26 GMT By Brenna Hillier

Sony’s top executives have been denied bonuses as the corporation weathers ongoing under-performance.

A Sony spokesperson told Bloomberg that the board greenlit a plan proposed by CEO Kazuo Hirai that Sony Corporation executives miss out on their bonuses this year.

Although it’s not clear how much each executive has given up, the bonuses are said to be worth between 30% and 50% of their total salaries.

The report is a little vague on which executives are affected, because it refers to “Sony Corp”; this name applies both to the core electronics division and the business unit, which includes executives from all divisions, including Sony Computer Entertainment.

However, the reason for the decision is clear: Sony’s electronics division has failed to make a profit for the second year running.

Hirai and former CEO Sir Howard Stringer gave up their own bonuses last year, but it seems the board is keen to spread the pain around this time.

Sony will reveal its fourth quarter and full year financials on May 9. Its most recent forecast revised estimates upwards; the first annual profit the corporation has turned in five years – driven primarily by the sale of assets and stock options.

Hirai took his CEO role in April 2012 and swore to slim down the corporation and turn its fortunes around.

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21 Comments

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  1. Lengendaryboss

    Good god, i never knew how things were much worse than expected behind the scenes.

    #1 1 year ago
  2. Clupula

    This shouldn’t be a surprise to anyone. The division Sony has that is actually doing well is the Playstation division. Their other divisions are not healthy.

    #2 1 year ago
  3. Erthazus

    Playstation division is not doing so well too. It is doing OK at best.
    PS3 so far is profitable… But it’s not a super success. It’s just profitable and it’s doing a fine job. But Vita? Xperia Play and other shit? Not so much. Not to mention that Sony bought Gaikai recently + PS4 R&D costs.

    Some serious shit is happening with Sony right now.

    #3 1 year ago
  4. Eddie Rodrigues

    @3 Vita is going through a hard time and the Xperia Play is a cellphone, what you wanted?

    Good to see you finally talking like a civilized person on Sony topics.

    @2 Some would argue that is the opposite. Sony doesn’t invest as much as the PlayStation brand on the other sectors so they have a low chance of getting burned on them.

    #4 1 year ago
  5. Clupula

    @4 – Do tell me how much they spend on their tv division every year. Especially pushing their 3D and 4K tv’s.

    #5 1 year ago
  6. FeaturePreacher

    I wonder if Sony ever got into in car displays.

    #6 1 year ago
  7. salarta

    Denied bonuses? “You are not allowed to have bonuses! I forbid you to have bonuses!”

    #7 1 year ago
  8. Dragon246

    @Brenna,
    No offense, but I have to say that game sites shouldn’t try to add to news provided by specialist financial sites like Bloomberg since their is a great chance that added “details” would be wrong.
    2 wrong things mentioned here-

    1.”Its most recent forecast revised earlier estimates downwards”
    Nope. Sony doubled profit forecast for FY’13. (Its FY12, but mentioned as FY13)
    http://www.vg247.com/2013/04/25/sony-doubles-profit-forecast-for-fy13-full-report-expected-may-9/

    2.”Sony’s electronics division has failed to make a profit for the second year running.”
    Actually, there is no “electronics division” Sony. More accurate will be to say, as mentioned in the original article, TV biz and to a certain extent Phone biz. And “second year running” part is wrong too.
    TV biz has not made a profit IN 11 YEARS :D

    Btw, if anyone’s interested, Sony TV division is likely to make a $ 750 million loss in FY12, up from $2.5 billion loss in FY 11. Good recovery, but still ways to go.
    Not everything is gloomy though, Xperia Z is estimated to have been sold 4.6 million units in just 40 days, faster than Galaxy Note 2. Not a success on the level of IPhone and S3, but easily the best selling Sony smartphone.
    And Vita sold approx 4.4 million units in more than a year :D

    People should read financial statements, they make for very fun reads, Ninty one was very fun and had lots of important details that no one mentioned, I expect same for Sony.

    #8 1 year ago
  9. Brenna Hillier

    @8 argh, this was my bad, copping to it. I got the revised downwards thing direct from Sony Investor Relations – not our reporting – but I misread the column headings and mistook the 2012 results for the previous forecast. Corrected. Thanks for the heads up.

    No thanks for suggesting I’m stupid just because I write for a gaming news site though.

    “Electronics division” is a handy shortcut to refer to consumer electronics business. It’s a thing readers understand, not a formal title. Bloomberg also refers to the “electronics business”.

    #9 1 year ago
  10. Dragon246

    @Brenna,
    Fair enough on electronic division part. Actually I was referring to that “second year running” part, since losses have been going on more than that (dat tv division loss :D), couldn’t say that clearly in my previous comment too, sorry :(
    Btw, one of the reasons I like this site, at least people here acknowledge their errors (nobody is perfect), not like some other stupid gaming sites :D

    Keep up the great work!

    #10 1 year ago
  11. Brenna Hillier

    @10 haha, thanks. Yeah, no point pretending we don’t make mistakes. Live and learn etc.

    #11 1 year ago
  12. salarta

    @9: If this counts for anything, when you said “electronics division,” I assumed you were trying to say the video game parts of the company only, since this is a video game website. Maybe everyone else looked at it the way you meant it, that’s how I saw it.

    @10: I agree, when it comes to the journalists here I think they’ve been very professional in admitting when they make innocent mistakes as well as in trying to do better in the future. That’s a very positive thing when we have so many cases out there of companies and people in them trying to cover their asses by pretending their mistakes were not mistakes at all. People in the comments are a different matter, but the journalists themselves have been good. :)

    #12 1 year ago
  13. theevilaires

    Dragon this is why I love you so much :D You’re the future of this site kid. Keep up the good work. Its good to know when I retire from this place they have someone around to keep the facts straight about SONY.

    #13 1 year ago
  14. stretch215

    Lol

    #14 1 year ago
  15. Dragon246

    @TEA,
    Ha. Why would you leave though?

    Btw, I am waiting with popcorn for people to say “SONY IS DOOMZ” despite not knowing shit about finances.

    #15 1 year ago
  16. salarta

    @15: SONY IS DOOMZ

    Enjoy your popcorn. :D

    #16 1 year ago
  17. redwood

    good guy kaz : D

    #17 1 year ago
  18. melonbuster1

    Wait PlayStation3 hasn’t turned a profit ps2 has.PlayStation 1 has. Not psp. Not vita. And not ps3. The company is junk stocks. To be blunt you would never buy Sony stock. Its a bad investment. .no bonuses. . Microsoft bonuses every year! !! Lol

    #18 1 year ago
  19. salarta

    @18: Note to self, buy Sony stock to spite random person on the internet!

    #19 1 year ago
  20. roadkill

    Meanwhile at EA..

    #20 1 year ago
  21. sh4dow

    *facepalm*

    “Sony’s top executives have been denied bonuses”
    “Sony executives give up bonuses”

    Seriously?
    (I know it may seem like I’m just hunting for mistakes in Brenna’s articles but… it’s coincidence, I swear)

    #21 1 year ago