Sony Execs To Take 50% Pay Cut

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I have no idea how Sony continually posts record losses year after year. They should be firing executives, not cutting their pay. :eek:

TWO years after Kazuo Hirai took over as chief executive of Sony, it is slipping into a familiar pattern. After telling investors that a turnaround was at hand, the company is set this week to report its fourth annual loss in five years. Ratings agencies have downgraded Sony’s debt to junk status.
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I wonder when everyone there is required to sell their blood to keep the company afloat, or the least to dump everything but the gaming division.
 
There's no pressure to be profitable when you can get open ended zero interest loans.
 
In America, we would make the joke that this just changed his yearly salary from $1 to $0.50. There stock is about even looking at the 5 year spread....which is a little bad when taking in to account the inflation over the last 5 years (especially the stock market itself from 2008 till now).

That being said I don't have anything against Sony. They have their quirks in regards to policies much like Apple. But overall the products themselves are solid, much like my opinion of Apple. I think has a much better ecosystem then other Japanese electronics companies.
 
They still need those executives to manage their divisions. They can't just fire executives without some sort of backup in place. If the CEO is convinced it is market action, and not a management issue that is causing the losses, then he may not dismiss the executives.

Then there's the little matter that, despite executive management's protests to the contrary, just about anybody could do an executives job. It's not much different, other than scale, to managing a personal budget. An executive's job isn't that big of a deal. It's stressful, yes, but not really that complicated. I've known absolute idiots in the role of executives that still did well because of the people that worked below them.
 
In calm waters the "renters" rose to the top...
Now they're lost at sea with zero competence at the helm.

There's no solution.
Hegel described this as the leaders (executives) conquering individual spirit (innovation).

The "tree" turns into "ashes"... eventually - and then we'll know who to blame.

In hindsight this is good. It naturally breaks down the dead wood and opens up the ecosystem for upstarts and new companies - unless you're stuck in some sort of government, patent hell.
 
50% paycut = $10 million a year for the privelege of losing investors money every year instead of $20 million? Boo hoo! ;)
 
And if it was in the US you'd see those same CEOs doubling or trippling their salaries before bankrupting the company and putting every employee out of work and shocked to find their pensions were secretly funneled to an offshore account days before those same CEOs took a private jet to somewhere the US wouldn't be allowed to come get them....
 
They can't fire them. Their golden parachutes would probably cost more than the losses they already have.

Golden Parachutes should be obliterated.
 
And if it was in the US you'd see those same CEOs doubling or trippling their salaries before bankrupting the company and putting every employee out of work and shocked to find their pensions were secretly funneled to an offshore account days before those same CEOs took a private jet to somewhere the US wouldn't be allowed to come get them....
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Yes and that makes you wonder why they make so much money in the first place. They justify their high salaries by saying that they have a lot of responsibility. But how is getting bonuses despite screwing up having a lot of responsibilities?
 
MisterHipster said:
lol :) Playstation is all they seem to have going for them.
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Their projectors are good. They were the first with a reasonably priced 1080p projector which forced DLP to reduce prices. I like Bluray, which they were a large part of. PS3 wasn't bad, and so well supported with feature based upgrades that I never had to pay for new hardware. And they've been making 4k movies for a while, which pushes the envelope somewhat on quality (even though 4k just has more compression than 2k).

They have been fairly innovative, just always try to corner the market by making it proprietary, which makes it Sony vs everyone else. It could payoff big like CD, but could be the reason they loose so much money when it doesn't.

Still, like AMD, it's good to have them around if nothing more than increased competition.
 
Better a salary cut instead of a salary raise, like a US company would do even when they are losing money.
 
GaryS said:
In hindsight this is good. It naturally breaks down the dead wood and opens up the ecosystem for upstarts and new companies - unless you're stuck in some sort of government, patent hell.
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Sony has the Japanese equivalent of TBTF. The Japanese govt. will just prop them up with 0% interest loans, as Aluisious already hinted at, as necessary.
 
Partially because of politics ('can't let the job creators fail, who else will create the jobs!', economy over there still sucks, etc.) and partly because of good old fashioned corruption.
 
This is..... actually pretty impressive. Now, sure they're still banking like crazy. But if it were another company (one in US, more likely) than it'll just downsize the company and maybe get rid of the CEO by paying him 50+ mil.

It's also 50%... that's a lot of money.
 
westrock2000 said:
That being said I don't have anything against Sony.
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You don't even resent their massive DRM? Their support for the RIAA and its lawsuits? Installing trojan horses on their CDs? Their support for SOPA, PIPA, DMCA, DRM abuse, and all their other anti-consumer politics? Not even a little?
 
$78 million loss for the PS department of Sony, announced just now. Really not bad for all the cash put into R&D, components, factories, marketing for the PS4 and Vita over that FY.

$holycrap million loss for the rest of Sony. They've trimmed a bunch of excess fat from even the PS division so they ought to be more than fine next year.
 
Sony used to be the gold standard, what happened?
When their products were made in Japan they were bulletproof but to cut cost moved production to China like everybody else and their products suffered.
 
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