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Sony executives to take heavy pay cuts, report claims

CEO Kaz Hirai and other execs to forgo bonuses as company posts annual loss

Sony CEO Kaz Hirai and other executives will take up to a 50 per cent cut in annual pay by forgoing their bonuses, according to a Wall Street Journal report.

While the company declined to comment on the claim, it's likely to be verified when Sony posts its consolidated results for the most recent fiscal year this Wednesday, May 14.

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Sony said in early May that it expects to report a net loss of 130 billion yen (£753m / $1.3 billion) for the year ended in March 2014, representing a fourth annual loss in five years.

That compares with a loss of 110 billion yen (£637m / $1.1 billion) forecast in February, itself a reduction from an October 2013 projection of a 30 billion yen (174m / $294m) profit.

While Sony has forecast a 14 per cent year on year increase in sales, it will be hit by an expected 30 billion yen (£174m / $294m) of expenses related to exiting the PC business.

Hirai, who is set to reveal Sony's long-term strategy on May 22, has said he intends to return the company to growth by rebuilding its electronics arm around games, imaging technology and mobile devices.

The company said last month that PS4 sales topped seven million units as of April 6.

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