Despite the promotion announced earlier today, Sony Computer Entertainment Chairman Kazuo Hirai is taking a pay cut after the company’s third annual loss. Sony CEO Howard Stringer will be joining him. Stringer’s salary and bonuses came to ¥345 million ($4.27 million) for the period ending on March 31, 2011, down from ¥408 million ($5.05 million) the previous year. Hirai dropped from ¥110 million ($1.36 million) to ¥101 million ($1.25 million).
Overall, Sony Corp has been losing out in the consumer electronics industry to companies like Apple and Samsung. In addition, the Japanese earthquake and then huge PlayStation Network data breach will cost the company around $2 billion operating profit.
“This might be a reflection of Sony’s desire to say ‘we’re taking a hit for this ourselves, and feel the pain as well as our shareholders and customers,’” said GovernanceMetrics International spokesperson Paul Hodgson on the pay cuts.
"Our brand perception, you'll be happy to know, is clearly improving again," Sony CEO Howard Stringer told the BBC about the company’s flagging fortunes. "My foremost responsibility to the board and all of you is to further advance the transformation process, firmly establish Sony's position as a global product, content and service leader in the networked digital era and ensure our continued development and growth.”
[Via Bloomberg]
