As was reported earlier on IGXpro, Nintendo has taken a massive chunk out of the 3DS pricetag, a risky move that will cause Nintendo to lose money in the long run and affect their earnings. Nintendo President Satoru Iwata talked with Shareholders in Tokyo, and said that he was accepting responsibility for the 3DS and its troubles and will be taking a slash in pay.
Iwata’s annual salary is a sizable 2 million dollars, and he will be taking a 50% pay cut. Directors of the 3DS project will get a 30% pay cut, while other executives will get it cut down by 20%. Iwata stated “We decided that if we take brave measures now, there’s high likelihood that a many players can enjoy the Nintendo 3DS in the future.”.
The boldness of this move is quite crazy, but he will still be raking in a million dollars every year. There have been a few executives in Japan who have cut their salaries and forgone the perks that come with being high up in a billion dollar company. Executives in Japan make far, far less than an executive in the United States. To give an example, Howard Schultz of Starbucks rakes in 30 million every year.
It’s rare I hear about an executive of any company saying something that is even close to the phrase “I’m taking responsibility and slashing my salary in half.”, such a mentality is common in Japan however, and it’s something executives in other countries can learn from.
Hence why there is no bail out plan for Japanese companies, they don’t need it.
When the government is so willing to just throw money at the company and the CEO’s still earn the millions.. they don’t see the need for the pay cut. They would probably take a pay raise and fire some people instead!