Bonuses may be a thing of the past for Japanese electronics giant, Sony; well, at least for the executives who have been with the company for the past three years. As the company is set to report losses for its third straight year, high-ranking company officials have decided to not get their bonuses in light of the financial situation the company is in.
While this may be the first time for some to experience not receiving their bonuses, Sony President Kazuo Hirai has not been receiving his since he began his tenure as chief executive officer in 2012. Top officials from other divisions have agreed to forego theirs as well. A Sony spokesperson said, “Our top management proposed to return their bonuses and that was accepted in the company’s compensation committee as appropriate.” Of course, giving up your bonus is quite easy if it’s not a big amount but with these executives, their bonuses range from around 35 to 50 percent of their monthly salary. In fact, the Nikkei Asian Review has estimated that with Sony not giving out its bonuses to its executives, its savings will be around ¥1 billion or $10 million.
Hirai has led the company through numerous restructuring since he became the CEO to curtail the firm’s losses. His restructuring program included 5,000 job cuts in numerous Sony offices and liquidation of some assets, including the company’s headquarters in Manhattan worth $1 billion. While it has sold off its Vaio computer business, Hirai remains committed in keeping the television unit amid competition from South Korean firms. Sony was once famed for its revolutionary electronics such as the Walkman, which has changed the way people listen to the music, but rivals Samsung and Apple has since overshadowed its former glory. And what used to be its crown has now become the weight that is pulling Sony down on its neck. The company is set to report later this month losses that were worse than what was originally projected. Until the company finds a way to secure its footing in the ever-changing competitive digital world, it will continue to spiral down and lose to other players in the market.
[via The Daily Star]