PS3 News: 40 Sony Execs, Including Hirai, Sacrifice Their Annual Bonus - PS3 News

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40 Sony Execs, Including Hirai, Sacrifice Their Annual Bonus

You don't see this every day.

According to a Sony spokeswoman, dozens of Sony executives have opted to pass on their yearly bonuses. This includes boss Kaz Hirai.

Hirai and 39 other top managers will not get a bonus this year, and that will save the company "several hundred million yen." In fact, a Nikkei estimate says the payout could've hit 1 billion yen (about $10 million). The move was apparently prompted by "severe business circumstances, including stagnant performance in the electronics sector." Last year, 7 Sony bosses gave up their bonuses; to have 40 do it this year is "unprecedented."

Interestingly, this comes just before Sony is expected to announce a profit for the first time in four years. Despite the upswing that has seen Sony double their fiscal earnings projections, the corporation could still be mired in losses. The company has instituted a corporate overhaul that has resulted in thousands of job cuts and the unloading of assets.

Now, I don't know anything about business but I'm wondering if Microsoft executives would do the same if MS was ever in the same position...

Tags: sony, sony executives, sony electronics, gaming industry

5/1/2013 9:21:22 PM Ben Dutka

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Comments (18 posts)

Rogueagent01
Wednesday, May 01, 2013 @ 10:11:07 PM
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This really is an uplifting story within a negative one. It is great to see corporate execs take responsibility and sacrifice their own potential incomes to help thier own company. I wish every corporation in the world would see this and follow suit even if in their own way. You know say a corporation isn't even in trouble but decides to do the same thing and instead use that money to give the low level employees a real bonus, or increase the hourly rate of its workers. Things like this would really change the face of corporations in a very positive way.

Agree with this comment 12 up, 0 down Disagree with this comment

Nas Is Like
Wednesday, May 01, 2013 @ 10:18:24 PM

Well they're sacrificing their bonus, not their pay. There's a slight difference.

Still, I'm glad they're doing that because it shows they actually (at the very least a little bit) care about the company.

Agree with this comment 11 up, 3 down Disagree with this comment

Rogueagent01
Wednesday, May 01, 2013 @ 10:35:23 PM

You do realize that bonuses at that level can potentially reach into the millions right? Far more than your average employee can make sometimes within a decades worth of employment. Many if not nearly all execs count/rely on those bonuses, and that is a very rare gesture from that level of employee.

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Nas Is Like
Wednesday, May 01, 2013 @ 10:39:21 PM

You're missing my point.

I'm just saying they still get their pay, which is likely high (as it is for many executives) and them losing a bonus wouldn't be a huge deal. Otherwise, 49 bosses taking that "no bonus" would not be happening.

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Rogueagent01
Wednesday, May 01, 2013 @ 11:02:14 PM

I'm not missing your point in the slightest. Of course they still are getting their salary you're acting as if I don't know what a bonus is. In most companies anywhere in the world a bonus is considered potential income as it usually will rely on everything from performance to the financial situation of said company. Corporate execs normally will never even consider this as an option, they would much rather downsize or close the company just to keep their bonuses. Look at the former employees of THQ. They are suing a company that no longer exists for their income , or even look at the financial crisis of 2008. The first thing those execs did with the bailout money was to give themselves some of the largest bonuses they ever recieved.

I am sorry but I will not play down what a grand gesture this is. Just say that all of them were to get the exact same bonus(which is practically impossible) that would be $250,000 from each of their pockets. That is not only rare it is nearly unheard of. There are more cases of low level employees taking pay cuts for their respective companies than execs giving up their bonuses. So regardless of their salary this is an impressive sum of money for them to give up.

Agree with this comment 6 up, 0 down Disagree with this comment

clockwyzebkny
Thursday, May 02, 2013 @ 6:49:35 PM

Sorry for beating a dead horse but Rogueagent01 is right. For an exec to give up their bonus is nothing to shrug at. At that high up, we're talking from hundreds of thousands to millions of dollars/yen
It's funny because i bumped into the president of my company today and decided to check his earnings (it's opened to the general public) with bonuses He makes over 2 million annually He and the rest of the high level execs would NEVER give up their bonuses They look forward to it too much

I applaud these execs and they've garnered even more respect from me

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Simcoe
Friday, May 03, 2013 @ 8:55:51 AM

I suppose it's one thing if an exec makes a very comfortable salary of say $200000 - $300000, but then makes millions of dollars in annual bonuses. The average employee, will never see their annual bonus be several times their annual salary...a fraction of their salary maybe.

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WorldEndsWithMe
Wednesday, May 01, 2013 @ 10:38:32 PM
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Corporate bonuses should never exceed more than a coupon to a nice dinner and a fine bottle of wine.

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maxpontiac
Wednesday, May 01, 2013 @ 11:20:38 PM

I disagree... bonuses should be much more than that as long as the "bonus" is equally shared with ALL those who contributed to the profits.

What I don't like is when a select few reap the rewards and keep it all to themselves.

Agree with this comment 8 up, 0 down Disagree with this comment

WorldEndsWithMe
Thursday, May 02, 2013 @ 1:51:27 PM

Thats how it always is though, even if the company goes bankrupt and regular folks get fired.

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Beamboom
Thursday, May 02, 2013 @ 4:38:07 AM
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At my job we receive a quarterly bonus if we reach certain goals. But shouldnt a "bonus" be something you received if the company did well? Isn't that the entire point with "bonuses"?

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maxpontiac
Thursday, May 02, 2013 @ 11:56:34 AM

I worked for a construction firm who paid bonuses out per job completed after the all the sub contractors, overhead and taxes were taken care of. It was a nice set up.

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Simcoe
Thursday, May 02, 2013 @ 7:28:26 AM
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An interesting and honourable gesture (considering it was May Day) by those executives considering the job cuts.

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firesoul453
Thursday, May 02, 2013 @ 12:41:14 PM
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I've always thought this is what EA needs to do.

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JROD0823
Thursday, May 02, 2013 @ 2:43:11 PM
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I would like to know what the grand total of all corporate bonuses paid out to executives worldwide was last year.

I bet that the money wasted on bonuses would be enough to pay the yearly salaries of tens of millions of non-executive employees.

But hey, why reduce unemployment rates when you can give all of that money to a small handful of individuals that don't really need the money, but are too greedy not to take it anyway?

What these Sony execs are doing should be seen as a shot across the bow that makes the rest of the corporate world reflect upon their current state of gross excess.

But it won't, sadly.

Last edited by JROD0823 on 5/2/2013 2:57:42 PM

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daus26
Thursday, May 02, 2013 @ 11:58:09 PM
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Sorry, but Nintendo one-upped Sony for taking a pay cut. Lol, just kidding. I'm just happy to see moves like this. It's something we'll never see from MS, Activision, EA, or Apple.

I give my respect to Sony and Nintendo.

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Simcoe
Friday, May 03, 2013 @ 8:47:17 AM

Perhaps it's something to do with Japanese culture where those executives take personal shame in the company is not performing well and morally cannot see themselves being "rewarded" for failing the company, it's workers and shareholders.

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ricksterj
Saturday, May 04, 2013 @ 4:42:29 PM
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With Sony's current economic state NOW they're thinking BUT with NO PS4 inherent backwards compatibility for PS, PS2 (especially) and PS3 this is VERY HALLOW consolation.

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