Panasonic Corp. is arranging pay cuts for its executives of around 30 percent starting in July over the firm’s deteriorating earnings, sources said Saturday.
The firm will likely cut compensation for President Fumio Ohtsubo, who will become chairman pending approval at a shareholders’ meeting in June, and Senior Managing Director Kazuhiro Tsuga, the incoming president, for six months or longer, the sources said.
Compensation for other executives will likely be reduced by 10 to 20 percent. This will be the first time executive compensation at Panasonic has been reduced since March 2009, when it posted a consolidated net loss of ¥378.9 billion for fiscal 2008.
Panasonic is expected to report a net loss of ¥780 billion for fiscal 2011, one of the worst-ever performances.