Nintendo boss takes massive pay cut
You have to love the Japanese and their humility. When they feel responsible for something, they’ll own up to it and suffer the consequences as a result. That’s exactly what’s happening over at Nintendo, which has seen its third straight annual loss in a row.
Following some pretty miserable financial results, Nintendo president Satoru Iwata has said he will take a 50% cut to his salary. For at least the next five months, Iwata will take home half as much money as usual, and other prominent executive staff will see pay reductions as well. Shigeru Miyamoto and Genyo Takeda, will take a 30% pay cut, while other board members will take a 20% pay cut.
This continues Nintendo’s corporate philosophy of not firing staff just to keep shareholders happy, which is both idealistic, and incredibly respect-worthy. Iwata did the same back in 2011 when the 3DS was selling poorly as well.
Most companies would rather get rid of the collective experience of its meat-bag staff before its executives would even consider taking less money. THQ, commendably did a similar thing, though it also shed 240 staff at the time, and ended up collapsing on itself.
The same won’t happen to Nintendo; even though it’s making a loss at the moment, it has enough reserve in the coffers to keep going for some time yet. Even so, Nintendo will be holding a big corporate meeting tomorrow to outline and plan its new business strategy. We may hear of an official Wii U price cut this week, in the hopes that the system could do a turn-around like the 3DS did.