Thu, May 02, 2013 | 02:53 BST
Sony executives give up bonuses due to weak electronics division
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.