Sony Execs Forced To Give Back Annual Bonus
Sony CEO Kaz Haira has ordered 40 fellow Sony executives to repay their annual bonuses. According to the Japanese publication Nikkei, employees have been asked to give back the bonuses which is the equivalent of 35% of their base salary.
Sony Announces Fiscal Report Tomorrow
This announcement comes the day before the company will release its latest financial results. The company is expected to announce loses of $12 billion dollars. Yeah, billion with a big B. The amount the execs are returning to the company is estimated at $10 million.
Sony says that it expects heavier losses than anticipated because of having to offload its Viao computer business. The company has also taken a hit from a heavy decline in disc manufacturing as Blu-ray and DVD sales are struggling. This marks the third year in a row that Sony has asked execs to return their bonuses.
What Does This Mean For Sony?
Well, for starters it's easy to try and not feel so bad for these execs having to return more than most of us make in 3-4 years, but let's think of it in this sense.
Is it good for any company, for any reason, to ask employees to pay any amount of money back? I mean everyone budgets for the money they make, so imagine you were asked to give back 35% of your annual salary. See how it's understandable for these execs to be quite upset? Now think about the fact that your company has had to do it for three years straight.
I feel like Sony should really focus in on the big money makers it has. Focus on PlayStation, TVs, and maybe Blu-ray or DVD players. I think it's good that Sony got rid of Viao. The disc sale is not surprising as more games become on the PSN and other sources. Sony just needs to regroup and go after what it does best.Originally Published May. 14th 2014