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Sony CEO and 39 other executives give up bonuses in ‘unprecedented’ gesture

The decision comes as the maker of PlayStation consoles eyes a profit after four years in the red. But its troubled electronics unit may remain mired in losses despite Hirai’s bid to drag it back to profitability.

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majiebeast1184d ago

EA could learn from this gesture.

Skarlett1184d ago SpamShowReplies(23)
dedicatedtogamers1184d ago

It must be a Japanese thing. Y'know, honor in business and all that or something. Nintendo did it when the 3DS utterly failed to sell (just prior to the 3DS price cut). And now Sony is doing it.

kreate1184d ago

what about americans?

Ken221184d ago (Edited 1184d ago )

@Kreat they take your ass to court and sue you xD. Sad but true.

@jcnba Just like your comment...

dedicatedtogamers1184d ago

I didn't mean it as an insult. I'm just pointing out that it must be a Japanese thing, since I've never seen an American videogame company do something like this, and yet we have two of the biggest gaming companies - Sony and Nintendo - each doing it within an 18 month time frame.

creeping judas1184d ago

@ Kreate, as you may have known, when the American economy was collapsing and banks were failing, they were still giving bonuses to the executives. American corporate culture is such that if you show up at work, you deserve a bonus. This does also trickle down to a lot of North American business. In my position as bank manager if I don't produce the numbers, I don't get a bonus. And that is the way it should be from the bottom all the way to the top.

I commend Sony Corporations stand on not taking bonuses this year.

Soldierone1184d ago

@Kreate,

Lol, our business' will just take a bigger bonus and run just before the company collapses. That, or they will send all the jobs to China so their paychecks get bigger, then cry when all the jobless people don't buy their crappy made products.

ravinash1184d ago

Sony has had to make a lot of cut backs and a lot of people have lost their jobs because of that.
the execs are doing the right thing by not accepting the bonus as it wouldn't really be fair if they did after making so many others are out of work.

Also it shows that they care about the company and sends a good image out to all those working under them.

Mind you, you do have to remember that these guys do get paid well even without the bonus, so I think they will be OK.

Software_Lover1184d ago

During the bad parts of the recession, Chrysler CEO gave up salary for a year.

nukeitall1183d ago (Edited 1183d ago )

@Kreate:

"as you may have known, when the American economy was collapsing and banks were failing, they were still giving bonuses to the executives. American corporate culture is such that if you show up at work, you deserve a bonus."

BS!

That mantra of "if you show up for work, you deserve pay" for the most part exist in low pay jobs. Others that work hard, tend to be extremely motivated and driven by passion.

There is a reason why the US is the one country in the world that rapidly seizes market share in whatever industry there is money to be made.

Take a look at the games industry!

The fact that CEO and high ranking officials give up their bonuses, is ridiculous. They shouldn't have received it in the first place! Sony has been on a downward trend for the past 20 years or something.

Apple former CEO, Steve Jobs took $1 salary! All his income was bonuses tied to the company's performance!

"Must be an American" thing then, eh? The rest of the world is greedy?

Point being, look at things with an objective eye. Don't be fooled, these executives didn't deserve a bonus.

If they demand it, I would fire them.

@creeping judas

"@ Kreate, as you may have known, when the American economy was collapsing and banks were failing, they were still giving bonuses to the executives."

That is because these companies have scoundrel executives that keep re-appearing in our corrupt government.

These people magically downvote proposal for the better good, and then retire from the government post. Then almost always get a consulting job or something similar for lots of money. Then sometime later they re-appear in the government again, creating more mishap.

We the American people should really demand these people jailed, and get some people that want changes in.

Right now it is just a corrupt mess where rampant greed can fester.

Keep in mind that I'm not saying greed is bad, but it can be.

+ Show (5) more repliesLast reply 1183d ago
Menech1184d ago

Lets hope it's enough to remove then from the red, Sony really need to start turning a profit soon. They seem to be managing in the console business, but most other sectors are in ruin.

grimmweisse1184d ago

They seem to be on the right track. Sony has doubled its full-year profit forecasts up from $201 million to $403 million. Seems that their playstation and financial arms are doing the serious business.

ZoyosJD1184d ago

I know 535 people that need to take a pay cut more than EA CEOs. *cough*congress*cough*

MiloGarret1184d ago

US congressmen probably earn 1/10 of what EA CEO's earn. At the very least they earn a lot less, and don't get any bonuses.

ZoyosJD1184d ago

@MiloGarret I know someone who was a lobbyist. Needless to say just being around that group is a lavish lifestyle.

"The most recent pay adjustment for Members of Congress was in January 2009. Since then, the
compensation for most Senators, Representatives, Delegates, and the Resident Commissioner
from Puerto Rico has been $174,000."

"Members are allowed to deduct, for income tax purposes, living expenses up to $3,000 per
annum, while away from their congressional districts or home states."

"Permissible “outside earned income” for Representatives and Senators is limited to 15% of the annual rate of basic pay for level II of the Executive Schedule."

"The Members’ Representational Allowance (MRA) is available to support Representatives in
their official and representational duties."

"The MRA is funded in the House “Salaries and Expenses” account in the annual legislative
branch appropriations bills. This account has decreased in recent years, from $660.0 million in FY2010, to $573.9 million in FY2012. Additionally, the Statement of Disbursements of the House states that the The 2012 allowances range from $1,270,129 to $1,564,613, with an average of $1,353,205."

"The MRA may be used for official expenses including, for example, staff, travel, mail, office equipment, district office rental, stationery, and other office supplies."

"The SOPOEA is funded within the “Contingent Expenses of the Senate,” account in the annual
legislative branch appropriations bills. The list of total office allowances contained in the Senate report on its version of the FY2013 legislative branch appropriations bill (S.Rept. 112-197) shows a range of $2,960,716 to $4,685,632, depending on the state.25 The average allowance is $3,209,103."

http://library.clerk.house....

That is only the "official" part.

MiloGarret1184d ago

Whether or not it is lavish depends wholly of which interests you represent, environmental or HR lobbyists for instance don't usually have the same resources as others. I should know, I've been one.

The official part is the only part. However, they do often earn other incomes by sitting in different boards or the like of other organisations. That has nothing to do with their salary as congressmen though. Bribes and so on of course occur, as well as favours, but not in the extent that the public thinks.

UnwanteDreamz1183d ago (Edited 1183d ago )

@Milo

Any idea how often they are in session? 138 to 190 days in a year. I can't believe you would defend congress. 128,000$ to do nothing but secure their future positions on a bank board. Half Goldman Sachs board members are ex politicians.

+ Show (1) more replyLast reply 1183d ago
KwietStorm1184d ago

A LOT of company execs around the globe could do something like this and benefit the whole. Its really redundant to keep dragging EA through the mud.

shutUpAndTakeMyMoney1184d ago

BUT ea IS AMERICAN. SO NO THEY WON'T DO IT.

TooTall191184d ago

Why should they? Is EA reporting losses?

showtimefolks1184d ago

i am hopeful that under Kaz's leadership sony can get back to what it use to be or atleast make profit on yearly bases

Playstation brand is not the one loosing money like some comments suggesting on this article

but more companies could have learned something from this, THQ CEO gave a discount but still got bonus when his company was about to go out of business

KAZ cares about sony along with other leaders within the company

BattleTorn1184d ago

Commenters here are paising Sony, as if they did this for any other reason than being in the red for years.

This isn't a gesture. It's a survival tactic

zeddy1184d ago

i dont get bonuses anyway. surely the only incentive you need to do good in your job is your salary. why dont they just pay them bonuses at the end of the month instead of a fixed salary.

LogicStomper1184d ago

If your incentive for doing good in your job is the salary, you have a job for all the wrong reasons.

Money is just a bonus to the job. People should find jobs which they actually enjoy doing, not the ones that give them more money.

You try to live a happy life, so you would want a job that actually makes you happy. Having an unenjoyable job to get money is just a waste of life, you're doing what you don't enjoy in hopes of getting something you do.

So the incentive for doing good in your job shouldn't be the salary, it should be the drive from your passion for the work.

andibandit1184d ago

Let me just fix this story........
Sony slashes bonuses but manage to put a positive spin on it.

Bobby Kotex1184d ago

Doing things like this is more culturally aligned with Japanese executives than American. An American CEO would never do anything like this.

Gh05t1184d ago

"An American CEO would never do anything like this."

Way to make one of the most ignorant statements around...

US Airways CEO Douglas Parker
Bank of America CEO Ken Lewis
AFLAC CEO Dan Amos turned down a golden parachute

Im not saying they all do I just think its a little ignorant to assume that some people have pride and realize that if you lead a company to unprofitably you don't deserve a bonus (regardless of local).

Also many CEO take pay cuts as well some to the tune of 25% which I am sure far outweighs the measly bonus they took and lasts longer than a one time bonus refusal.

i.e.

"McGee’s total compensation for 2011 declined 25 percent to $7.94 million, from $10.6 million in 2010, Hartford, based in the Connecticut city of the same name, said today in a regulatory filing. McGee’s bonus for 2010 was $1.76 million." - Bloomberg website

And he turned down that 1.76 million bonus.

What about the last 3 years SONY was not profitable did they take the bonuses?

metalgEer1183d ago

It's funny how people argue about Kaz's decision to give up his bonus. This guy is a millionaire so even if he gives up his bonus this year it wouldn't affect his life style by a bit. Secondly, CEO's of giant companies such as Sony are not only offered cash bonuses but incentives such as shares and other sort of asset's from the company. So if the company turns a profit, they'll earn dividends on their shares. Probably he gets double of what he gave this year next year in entitilements and bonuses.

Downtown boogey1184d ago

Why EA? HOW ABOUT ACTIVISION FFS!!??

lojohygyhyti1183d ago SpamShow
TheLyonKing1183d ago

But then you think how much are these execs on a bonus is probably nothing to them.

kenshiro1001183d ago (Edited 1183d ago )

I agree. In fact, every company should learn from this. I hope that Sony gets back on their feet. Any company going through this crap-it's an uphill battle for them.

Syntax-Error1183d ago

It's simple mathematics. I give up my $1M bonus this 1 year for 5 more years of employment at $350K a year.

+ Show (14) more repliesLast reply 1183d ago
Godmars2901184d ago

Considering what CEOs salaries have become generally especially when a company's in trouble this is surprising.

Hostess would still be around and Walmat would be better regarded if their execs weren't so greedy.

Dlacy13g1184d ago

I do often wonder how the execs at some of the struggling companies are making "bonuses" when their company books show the comapany is going down the tubes. Seriously, what kind of world do we live in where we reward leaders of companies for failure?

creeping judas1184d ago

I think there are three executives from failing companies that disagree with your comment, and feel that they still deserve their bonuses.

Dlacy13g1184d ago (Edited 1184d ago )

To be clear, I am talking in general terms in reference to Godmars290's comment.

@creeping judas I have no doubt that almost every executive in the world feels they deserve their bonuses. But if your company or division is failing...I just don't see how anyone should be getting bonuses. Again, not being company specific here... Bonuses should be based on success nothing more, nothing less.

Bobby Kotex1184d ago

The worst was during the beginning of the economic recession in the late 2000s. Execs were giving themselves ridiculous bonuses while their companies were losing tons of money.

Minato-Namikaze1184d ago (Edited 1184d ago )

I thought the playstation division has been making a profit, but because they are apart of the tv divsion (electronics?) it doesn't seem like it makes a profit.

Edit: Nevermind i read the title wrong.

kremit-211184d ago

Hostess is making a comeback. Minus the unions who refused to cooperate as well. But im sure the unions will be back at Hostess eventually.

Godmars2901184d ago

The unions were by the old company. Had agree to several pay cuts just to keep working only to be asked to take more, meanwhile the execs gave themselves raises.

Animal Mutha 761184d ago

This to me speaks volumes as the to state of the business and the perceived value of those who are running it.

Ken221184d ago OffTopicShow
MaideninBlack1184d ago

Saw this story earlier today on a JP blog. Glad someone finally translated it.