After a Number of Problems, Sony Cut’s Salaries for Kaz and Stringer
Sony Corp. Chairman Howard Stringer and Executive Deputy President Kazuo Hirai both had their salaries slashed this year dude to a multitude of factors. While one might jump to the conclusion that this was due to the PSN fiasco earlier this year, it was much more than that. This just has not been a good year for Sony, and the Chairman and President’s salaries would naturally reflect that.
Bloomberg reports that while the most publicized of these incidents was the hacking of the PlayStation Network, Sony is also losing some ground to Apple and Samsung in the battle over smartphones, TVs and tablets. Further, the Japan Earthquake earlier this year also hurt the company alongside many other Japanese businesses.
While Sony says that 90% of users are back on the PlayStation Network following the hack, there was still an estimated loss of 14 billion yen, which followed a loss of 260 billion yen the previous fiscal year, which ended March 31. Not exactly what you want to show to inspire confidence in your shareholders.
The pay cuts do send a clear message to shareholders however. Sony hopes that the cuts will assuage the shareholders and show that they understand the losses they have sustained and are taking these issues very seriously. The hope is that this reinforces shareholder beliefs in Sony’s stock.