Nintendo Bosses Cut Their Own Pay In Half

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Wouldn't it be cool to see more American CEOs follow Nintendo's lead and cut their own pay when the company doesn't perform under their leadership?

The head of Nintendo said Wednesday he would slash his salary in half after announcing a 30 percent dive in nine-month profit on weak demand for its new Wii U console as gamers are enticed by cheap, downloadable games for mobiles. President Satoru Iwata told reporters he would draw a reduced salary for five months to atone for the downturn, while other members of the board will take a pay cut of between 20 and 30 percent.
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The concept of honor appears to still be alive in Japan. In the U.S. such a move would either be perceived as weakness or other business leaders would think that you had lost your mind.
 
Indeed. Would NEVER ever happen in the US. They'd given themselves a 95% bonus instead of a 100%, If that.
 
pothb said:
Indeed. Would NEVER ever happen in the US. They'd given themselves a 95% bonus instead of a 100%, If that.
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They'd have given themselves a 200% bonus but only after they laid off 25,000 minimum wage employees over here and replaced them with 75,000 Chinese employees.
 
CEOs in the US just fire more people, give themselves bonuses greater than small nation's GDPs, and then float away on wings made of money into promotions at other corporations where they rinse off the detritus of humanity that dares to impact them in any way so they may begin the process anew.
 
that or they get paid millions for getting fired for running the company into the ground.
 
Zohar78 said:
that or they get paid millions for getting fired for running the company into the ground.
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This is always my favorite spend a few years running the company into the ground. All while firing the lowest paid workers and increasing their own salaries by more than the combined salaries/benefit packages of the laid off workers. And in the end resigning with a 25 million dollar severance package.
 
One of the biggest problems in the world today is the lack of humility.
 
Fanattic said:
This is always my favorite spend a few years running the company into the ground. All while firing the lowest paid workers and increasing their own salaries by more than the combined salaries/benefit packages of the laid off workers. And in the end resigning with a 25 million dollar severance package.
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It's all a big game/joke to those CEOs, I'm sure. They're human garbage.
 
Didn't Steve Jobs had an annual salary of $1? For guys like them, salary doesn't mean much, it's the incentive and options they are awarded that makes them a killing.

Still a good approach, since their compensation will now be based on companies performance.
 
BillNutz said:
Didn't Steve Jobs had an annual salary of $1? For guys like them, salary doesn't mean much, it's the incentive and options they are awarded that makes them a killing.

Still a good approach, since their compensation will now be based on companies performance.
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Yeah Jobs is a very special case though, he was loaded filthy rich, he had a TON of stock from Apple, something to the tune of 1.5 billion worth, and he had an even larger boatload of Disney stock when he sold one of the other companies he started (Pixar) to them and became the largest holder of Disney stock (something like 4.5 billion worth). Dividends alone from the Disney stock netted him something on the order of $50 million a year, and if he needed more money he could sell some stock.

So yeah the $1 salary didn't mean much, both as a gesture of what he was doing and him losing lots of money in salary.
 
w4ffles said:
This. Golden parachutes are ridiculous. CEO's should get a flaming parachute for doing poorly.
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Golden handshakes, golden boots, golden parachutes, the little club of corporate directors really seams to take care of each other. They roam from one failure to the next toting a bag full of golden deals and shake their good friend's hand for yet another golden deal.
 
Wonderful, so he's only going to take home 10 million instead of 20. Wow, hope he survives.
 
Sp33dFr33k said:
Wonderful, so he's only going to take home 10 million instead of 20. Wow, hope he survives.
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Comparatively speaking though, what he's doing is quite noble. Bankers here were giving themselves bonuses after being bailed out and American CEO's would much sooner fire a thousand employees than take a salary cut.
 
Is imagine this has more to do with culture rather than it being obvious when the thing launched it was going to flop. Other than diehards everyone seen it other than Nintendo leadership.
 
Steve said:
Wouldn't it be cool to see more American CEOs follow Nintendo's lead and cut their own pay when the company doesn't perform under their leadership?
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Holy crap financial sense still exists, was only the other week a corrupt bank in the US, gave one of it's higher ups a 20 million raise.
 
Almost makes me want to go out and buy a Nintendo product... probably the 3DS XL if anything. Wii & Wii U still sucks IMHO.
 
Well it's illegal for them to profit by dumping their stock options when they know the company is going down, so they give themselves raises to compensate which is not illegal :D
 
Fantastic gesture on his part. I also believe it's a culturally driven decision, and has been done in the past with other Japanese companies, though my google skills are failing me at the moment.
 
Now if they could just cut the price of the WiiU in half. I'd buy one just for the Nintendo exclusives.
 
I knew it, reddits apprent cock sucking obsession with nintendo is most probably being driven by PR with their yearly losses and now this,

who seriously cares that much about 25 year old games, and the same old IPs year after year of childish games.
 
Very admirable. Hate to diminish that but it should be the norm. Instead, US companies lay off thousands and overwork the remaining employees to make up the difference. That is the bs part of captitalism - I haven't been around long enough to know if it has always been like that but it seems so out of whack.
 
w4ffles said:
Comparatively speaking though, what he's doing is quite noble. Bankers here were giving themselves bonuses after being bailed out and American CEO's would much sooner fire a thousand employees than take a salary cut.
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Why is it that people here cannot remember when MANY US company CEOs slashed their own salaries or cut them to $1. When they did it everyone said oh must be some alternative evil reason. When a Japanese company does it its a noble gesture? At the end of the day its all the same on both sides of the pond.
 
If only Sony's management would subscribe to this idea. They'd all commit seppuku.
 
Sp33dFr33k said:
Wonderful, so he's only going to take home 10 million instead of 20. Wow, hope he survives.
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IF that was the case, he would been the highest paid CEO in all of Japan.


Just so you know, the highest paid CEO in Japan is Nissan's, at ~12million USD equivilent. The next up is Toyota's CEO, closely followed by Honda's CEO. Both combined make less than a third of Nissan's CEO (Nissan's CEO also gets a paycheck from Renault, a French company. That paycheck is still larger than Toyota's and Honda's CEOs combined). Those three are among the top three paid CEOs in all of Japan... and Japan's FSA requires all companies to disclose salaries over ~1 million dollars.
 
rudy said:
Why is it that people here cannot remember when MANY US company CEOs slashed their own salaries or cut them to $1. When they did it everyone said oh must be some alternative evil reason. When a Japanese company does it its a noble gesture? At the end of the day its all the same on both sides of the pond.
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because of stereotypes. for every one ceo that did that, there was 10 that made bank and didnt.
 
For all the criticism that people have leveled at Steve Jobs over the years he only had a $1 salary and the rest of his compensation was stock ... for the CEOs of most public companies this would be the best approach to pay (small salary, large number of stock options)
 
jeremyshaw said:
IF that was the case, he would been the highest paid CEO in all of Japan.


Just so you know, the highest paid CEO in Japan is Nissan's, at ~12million USD equivilent. The next up is Toyota's CEO, closely followed by Honda's CEO. Both combined make less than a third of Nissan's CEO (Nissan's CEO also gets a paycheck from Renault, a French company. That paycheck is still larger than Toyota's and Honda's CEOs combined). Those three are among the top three paid CEOs in all of Japan... and Japan's FSA requires all companies to disclose salaries over ~1 million dollars.
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That's cool, is it because of their culture or it's some law in Japan?
Also... why Nissan? Toyota is much much bigger, I'm confused. Still, cool info :)
 
BillNutz said:
Didn't Steve Jobs had an annual salary of $1? For guys like them, salary doesn't mean much, it's the incentive and options they are awarded that makes them a killing.

Still a good approach, since their compensation will now be based on companies performance.
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I did not know that about Steve Jobs. Which is a positive, won't make me think him as agreat person, but still better than my previous thoughts of him.

Sp33dFr33k said:
Wonderful, so he's only going to take home 10 million instead of 20. Wow, hope he survives.
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You should not think of it as 10 million less than 20 million, but half of his pay. And half of anyone's pay is a lot for them.

Zohar78 said:
because of stereotypes. for every one ceo that did that, there was 10 that made bank and didnt.
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And I would also like to see examples of US CEO has done similar things. Also, are you talking about big ceos like one similar to Nintendo?
 
good on him

in 'Merica the big boys get raises based on how many US citizens they can lay off and outsource work to some random asian country
 
DesertCat said:
The concept of honor appears to still be alive in Japan.
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Definitely Bushido code kicking in.... poor executives are probably only awarding themselves $34.5 million in pay/stocks/benefits and bonuses reduced from $10million to $5million a year. They are really going to be suffering until they can get the ball rolling again.
 
I think its a very honorable gesture, more steeped in there culture though in the USA we only have Honor Among Thieves code here....
 
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