Nintendo Executives Get Pay Reduction, Iwata Drops 50 Percent of his Salary
Well, this wasn’t really expected, Nintendo is at such a point right now when most other CEOs would freak out and sack a ton of workers. Yet, the company president Satoru Iwata has announced that all the executives will get pay reductions – Iwata himself getting the nastiest blow.
According to AFP, for the period between February 2014 and June 2014, the company president will slash his own pay by 50 percent.
The other representative directors, Genyo Takeda and Shigeru Miyamoto will get a 30 percent reduction too. All the remaining directors will slash their pay by 20 percent. This includes Tatsumi Kimishima, Kaoru Takemura, Shigeyuki Takahashi, Satoshi Yamato, Susumu Tanaka, Shinya Takahashi, and Hirokazu Shinshi.
The decision has been taken as a direct result of the 30 percent slump in Nintendo’s profit for the nine month period ended December 2013. It was announced recently that Nintendo will be reporting a loss for the third consecutive year. The reevaluated forecasts suggest that a 35 billion yen ($355 million) loss will be reported for the 2013.
Things are not looking so bright for Nintendo; their current limited game selection on their latest console, Wii U, as compared to their competitors like PlayStation and Xbox has had a disastrous effect on their financials. We have also been hearing that Nintendo is planning to branch out into other sectors like mobile gaming which could be a result of the same.
The decision taken by the board of directors and Iwata is surely a good gesture but personally I think the company needs a miraculous turnaround instead of pay reductions if they wish to get back in the game.