OSAKA (Kyodo) Panasonic Corp. plans to cut the annual pay of its president and chairman by 30 percent this year to take responsibility for its projected red ink, sources said Wednesday.
President Fumio Otsubo, Chairman Kunio Nakamura, and other board members will see their pay slashed 20 percent, the sources said.
The electronics giant incurred a group net loss of ¥378.96 billion in fiscal 2008, its first red ink in six years, and is expecting a second straight annual net loss totaling ¥195 billion for fiscal 2009.
Panasonic, formerly Matsushita Electric Industrial Co., has cut pay between 10 percent and 20 percent for board members and 5 percent for managers since February because of its deteriorating performance.
Further top management cuts are part of restructuring efforts that include 15,000 job cuts and the closure of 40 production facilities worldwide by the end of fiscal 2009.