Nintendo CEO Takes 50% Pay Cut

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Nintendo CEO Takes 50% Pay Cut

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Nintendo's upper management is taking a wage cut in response to poor 3DS sales.

Nintendo President and CEO Satoru Iwata is having a bad week. Just yesterday, Nintendo announced that it's lowered its predicted earnings for the 2011-2012 fiscal year by 82 percent and that the (relatively) slow selling Nintendo 3DS is receiving an $80 price cut, less than six months after the handheld's launch. Now it seems Iwata himself is also getting a price cut.

The fourth CEO of Nintendo, who was named one of the top CEOs in the world by Barron's Magazine back in 2007, will see his yearly income of approximately $1.7 million, which includes both his salary and performance based bonuses, cut in half. Other representative directors, including Mario-creator and general lovable oddball Shigeru Miyamoto, will be taking a 30 percent pay cut while nonspecific execs are losing 20% of their wage.

The pay cuts are ostensibly part of Nintendo management "taking responsibility" for poor 3DS sales, the cause of which Iwata speculated on last month.

"The current situation," he said when asked about the 3DS' slow sales, "resulted from the fact that the delay of developing Nintendo 3DS software and launching online services, like Nintendo eShop, 3D video services and so forth, occurred simultaneously, so we could not meet people's high expectations that they had before its launch, and we did not see momentum after the launch."

Source: Kotaku Japan via Joystiq

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What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

I wonder what kind of pay cut they will take when the Wii U releases....

It's nice to see Nintendo not resting on their laurels for once.

That's pretty much what they've been doing this whole generation.

whoa... CEOs ACTUALLY didn't layoff hundreds of their employees just so they can keep their regular wage.

Usually, as cited in the news, CEOs plan for profit is
1. Destroy the Business you are working for.
2. Something (They know but I'm not a business expert)
3. PROFIT!!!

(Yeah I know that joke is overused)

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

And we sit back and watch them squander that money while killing the company until every ounce of life is taken from it and they file bankrupcy and close down, letting tousands of workers lose their job and fucking them over while everyone else in the world who gave a crap looks at the goverment and asks, "Why didn't you guys do something to stop this?", and said CEO's go on to work as CEO or another high rank job at another company and bleed them dry...

Also, anyone else under the impression now that CEO's are vampires and that we should stake them?

Wait a minute...

Those who manage a company take responsibility and a pay decrease for failing to live up to the standards they profess? And the "little" guys are not being punished for their leader's inabilities?!

What kind of backwards universe did I just stumble into here?!?!?!?!

Wait, they aren't in America. OK, issue resolved.

OT: Just another reason that, though they have some weird practices (i.e. girls faces with their tounges out on toilet paper, animated porn, etc.) Japan has a more sophisticated and, dare I say, balanced business ethic than those in my country. Kudos to Nintendo CEOs for taking that initiative.

They got balls, props to them. On the other hand, making 850k a year isn't that little.

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

Japanese business is more "honorable" in the name of forming good business relations. Sign a contract with a Japanese company, and they won't try to "change" the deal or not follow through. It has to do with the cultural background of the nation and their self image. They also don't want all their investors to die of a heart attack from the news.

It's incredible that they take some responsibility when things go bad instead of laying off 400 employees and giving themselves a big bonus.

Then again, you can't really complain with a yearly income of 1.7 million...........

figment of mind:

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

And we sit back and watch them squander that money while killing the company until every ounce of life is taken from it and they file bankrupcy and close down, letting tousands of workers lose their job and fucking them over while everyone else in the world looks at the goverment and asks, "Why didn't you guys do something to stop this?", and said CEO's go on to work as CEO or another high rank job at another company and bleed them dry...

...and that's terrible.

Also, anyone else under the impression now that CEO's are vampires and that we should stake them?

try wall street bankers using tax payer's bailout money to give themselves bonus after they drove America's economy to shitter. that always makes my blood boil.

American CEOs can go fuck themselves but I'd rather see those bankers burn at the stake.

Sometimes, I clinch my 3DS in my hand as get down on my knees and scream at the heavens. All the while wondering why Ocarina of Time is the only good game on the system.

OT: It is nice to see that they didn't say: "OOPS! LOST PROFIT, FIRE EVERYONE!"

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

While this is surprising, I think it surprised me more that his pay including bonuses before the cuts was only $1.7 million. A CEO of a company that's been practically printing money for five years wasn't being paid in the multiple tens, or even hundreds of millions? I didn't think companies like that existed.

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

And then he lays off people anyway.

It's like the damn Twilight Zone.

It's so nice and refreshing to see this, and comming from Nintendo makes me smile even more. My hat is off to you Iwata!

Good man. Take responsibility for your actions and those of your company.

Jumwa:
What kind of bizarro universe is this news report from?! A CEO taking a pay cut for failing to do their job correctly?!

I don't know how things work in Nintendo, but here in North America when a CEO bungles something horribly, we give him pay raises and government bail out money.

That's normal in Japan, those who fucked up have to take responsibility.
It not necessarily a good thing though, in politics it leads to a nice game of "shifting the blame" before anyone gets chosen to take it.
Still better than the Western approach where the problem is fixed by no one admitting fault.

Muhoohaha...

My plan to overthrow the bastards is starting to succeed.

Wait, that wasn't me. They did that to themselves. Well after making such a shitty system they don't need my help failing I guess.

This kind of thing shouldn't be news. If we lived in a sane world, it wouldn't be. If a company finds itself in the position where people have to start taking pay cuts, executives (KOTICK!) should be the first on the chopping block. They're the group making the most money already, while also being the most likely culprits for the company as a whole doing poorly.

Of all Nintendo's recent missteps, it's good to see they're not entirely evil and unsympathetic.

*claps* a CEO who takes responsibility and shares the loss with the company he runs. T_T Nintendo sometimes I hate you but most of the time I love you

You know, it's nice and all that he did this. But what kind of a world do we live where this is the oddity and we congratulate him for doing? "You accepted responsibility! We're so proud of you!"

It's disgusting we have to be proud of someone doing the minimum.

So a company that is known for making, let's say, "immature distractions" is acting way more mature than companies which essentially just play with Lincoln logs made of money all day? Maybe it's Japanese cultural values coming across here too, but damn. I have much more respect for a company who is willing to cut its top end salaries to compensate for failure. But this is just a post on the internet where there's way less paid than a dime a dozen so suddenly this entire tirade feels pointless when juxtaposed with the reality that execs in America took money handed out by the government and just pretended that business as usual passed. What. The. F....

I approve of everyone making the same joke in different versions. O.o

And props to the CEO. Nice way to deal with the problem.

Hmmmmm, nice to see execs taking the fall for failings, I applaud this.

Take note all you wanker bankers, this is real leadership

Any time I read a CEO takes a pay cut, I don't find it endearing at all. Oh, you mean he has to make do with only a half a million dollars? How poor and unfortunate of him. If only we all could be so lucky.

how very Japanese.
around these part CEOs react to poor sales by taking more coke, giving themselves a pay raise and wiring all their cash to a tax haven.

200 years ago, they would have committed Seppuku, if this was all self inflicted.
Assuming it is, then our American Bank CEOs could learn a lesson from them.

It's a nice gesture, I suppose. $850k isn't too shabby though, even it's pocket change compared to what other CEOs of Nintendo-sized companies make.

/clap
Nice to see the management take the hit instead of the little guys. Nintendo's going to be an interesting company to watch for a while.

you mean it doesn't print money?

seriously now: For them to look at their numbers, see how they messed up and say, "We get a pay cut." takes balls. In America, when a company starts to do bad, the CEOs fire people, cut the pay of the people who work below them, then take their private jet to go on vacation. American CEOs will do anything they can to not take blame and get more money.

That's the American way.

I am glad he is taking responsibility and not a large group of workers there. Hopefully things will start going up for them soon.

This is pretty much what everyone is saying, but still, props to the Nintendo executives. I have never heard of something like this happening in the United States, at least without huge external (government or shareholder) pressure.

Too bad for them, I like their CEOs, but you can't say it's not deserving. I like that they take responsibility, and wall street should take notice. Good on you Nintendo!
I have no doubt that their luck will return once the new Mario games come out and their salaries will go back up.

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