OSAKA (Kyodo) Sanyo Electric Co. does not plan to pay retirement bonuses to nine former top executives, holding them responsible for the firm’s poor finances, company sources said Wednesday.
The nine are former Chairman Satoshi Iue, a member of Sanyo’s founding family, seven other board directors who stepped down in March, and one auditor who is resigning in late June, the sources said.
The company believes its shareholders would disapprove of the generous retirement packages usually accorded to senior executives, considering the financial straits in which Sanyo finds itself.
Iue, oldest son of company founder Toshio Iue, served as president and chairman, acting as a board member for about 45 years.
The Osaka-based firm reported a consolidated net loss of 205.66 billion yen in fiscal 2005, up from the previous year’s 171.54 billion yen loss.
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