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Nintendo management taking pay cuts after poor fiscal results
Nintendo management taking pay cuts after poor fiscal results
January 29, 2014 | By Mike Rose

January 29, 2014 | By Mike Rose
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    12 comments
More: Console/PC, Business/Marketing



Following its latest poor fiscal results, Nintendo said today that its president and board members will take pay cuts to make up for the weak demand for its Nintendo Wii U console.

Nintendo revealed today that its Nintendo Wii U has only sold 5.86 million hardware units after more than a year on sale -- notably, both the Xbox One and PlayStation 4 consoles have nearly outsold it after just two months.

Nintendo president Satoru Iwata said today that he will cut his pay in half for the next five months, while other members of the board will take a pay cut anywhere between 20-30 percent, reports the AFP.

Furthermore, the AFP reports that Nintendo intends to buy back nearly eight percent of its outstanding shares from shareholders in an attempt to buoy the value of its stock.

Update: Bloomberg reports that Iwata issued a statement suggesting that shareholders look upon the buyback as an attempt by Nintendo to reward them in lieu of substantial stock dividends.

"We’ve been rewarding our shareholders mainly through high dividends, but we cannot generate as much profit as we used to make,” stated Iwata.



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Comments


Joe Zachery
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Where others would lay people off. They take the hit so everyone can still work!

Troy Walker
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This is a pretty rare instance of company leadership standing up and doing something honorable...

John Flush
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This isn't even the first time they have done something like this. This is why, despite some of the games and characters begin to wear on me, I try to get my kids and myself to be interested in Nintendo. This company is one of the few big companies where the CEO and executives don't run it into the ground for short term profits. Now, if only I could get more interested in the Wii U...

Evan Combs
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Is this a Nintendo thing, or just a Japanese thing in general?

Harry Fields
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I think it's common in many places. If a CEO gets to keep his job when the company hits rough waters, there's usually a cut in compensation, with restoration tied to the company meeting certain goals for returning to profitability. Hirai took a cut last year (will probably take another after the latest news). It's the financial sector CEOs that seem to get pay increases for failing at their jobs.

Eric Geer
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The unfortunate part is that I really love the WiiU games that are out....Windwaker, Pikmin 3, Lego City Undercover, Monster Hunter 3U, ZombiU, Splinter Cell, Wonderful 101, Mario 3d World, SMBU, NFS Most Wanted, Assassin's Creed Black Flag, as well as others. It's unfortunate to say the least...but glad that management is taking the responsibility for the failure in sales.

Merc Hoffner
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I think Iwata is one of the most insightful, daring and responsible CEOs out there. I certainly hope this staves off the shareholders chasing him out because they won't find someone else who could deliver a 'Nintendo Revolution' in short order, and would set a terrible double standard when you look at the financials at Sony, EA, Take-Two etc.

Benjamin Quintero
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I wish American CEOs and politicians would take note instead of blaming the people for poor financial results. Apparently some CEOs problems are not a long string of bad releases, its that we arent buying them fast enough. That makes sense :).

Eric McConnell
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Powerful Satoru Iwata

Zach Grant
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In the US, they'd fire the CEO and he'd get a $20 million parachute package.

Ratio of CEO pay to average worker in the US is 354:1, Japan 67:1

http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-You/CEO-to-Work
er-Pay-Gap-in-the-United-States/Pay-Gaps-in-the-World

Eric Harris
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I have a good feeling about the Wii U returning to a profitable system if Nintendo stands by it. The other next gen consoles are in bigger trouble than Nintendo.

Eric Geer
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I hope they turn it around like the 3DS, 3DS has some incredible games and I think those experiences are possible, plus more, on the WiiU


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