Sony’s Hirai, Stringer Lose Bonuses After Company’s Record Loss

Sony Corp. (6758) Chief Executive Officer Kazuo Hirai and predecessor Howard Stringer didn’t get bonuses last year after the maker of Bravia TVs posted a record loss.

Hirai’s base salary in the year ended March 31 rose 29 percent to 88 million yen ($1.1 million), from 68 million yen the previous year, when his total pay was 101 million yen, the company said in securities filings today.

Stringer’s base salary was cut 6 percent to 277 million yen, from 295 million yen the previous year, when his total pay was 345 million yen, excluding stock options, the company said.

Hirai, 51, replaced Stringer, 70, on April 1. Stringer, whose tenure was capped by four straight years of losses at the Tokyo-based company, ended his operational role and was elected chairman of Sony’s board of directors today.

Speaking at Sony’s annual shareholders meeting, Hirai vowed to accelerate reform at its electronics business to revive the company after it reported a 457 billion-yen net loss in the year ended March 31. The maker of PlayStation game consoles is cutting 10,000 jobs as part of a turnaround plan and forecasts net income of 30 billion yen in the year started April 1.

Sony’s general counsel, Nicole Seligman, also didn’t receive a bonus in the year ended March. Her total compensation, excluding stock options, fell to 128 million yen from 170 million yen the previous period, today’s filings show.

The executives’ compensation compares with the 987 million yen earned by Carlos Ghosn, chief executive of Nissan Motor Co., Japan’s most profitable carmaker. The 58-year-old CEO’s pay increased from 982 million yen a year earlier, Ghosn said at the company’s annual general meeting yesterday in Yokohama.

Publicly traded companies in Japan are required to disclose executive pay exceeding 100 million yen a year. Ghosn was the highest-paid executive in the past two years, according to data compiled by Bloomberg.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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