Sony to slash executives’ pay after years of losses


Sony Corp. will cut the salaries of Chief Executive Officer Kazuo Hirai and directors in connection with the ¥856 billion the company has lost during the past four years.

Payments to executives including Hirai will be reduced, spokeswoman Mami Imada said Tuesday. She declined to elaborate.

The company paid ¥799 million in salaries to 21 executives and directors in the year that ended in March, it said in a statement.

Seven corporate executive officers returned their bonuses for the year that ended March 31, Sony said in a statement to shareholders Tuesday. Once a trendsetter with products such as the Walkman, Sony’s losses have mounted after customers switched to Samsung Electronics Co. TVs and Apple Inc. iPhones, pushing Sony’s share price below ¥1,000 on Monday for the first time since 1980.

Hirai took over as CEO in April from Howard Stringer and predicted a return to profit this year.

Sony will seek shareholder approval for a new board consisting of 14 members at a June 27 meeting, the company said. Hirai also is seeking to become a board member.

The company, which is cutting 10,000 jobs as part of a turnaround plan, has forecast making a profit of ¥30 billion this business year. Last year, the company had a record ¥457 billion loss.