Nintendo's president takes 50 percent salary cut

The phrase, "Put your money where your mouth is," is perhaps used too much. But in the case of Nintendo's current president Satoru Iwata, it's entirely appropriate. In the wake of disappointing financial results that were first revealed on Thursday, Iwata announced he would take a 50 percent cut in his fixed salary.

In statements made to company shareholders and posted on Nintendo's web site, Iwata not only announced that his salary would be cut in half but that the company's representative directors would also take a 30 percent salary price cut. Nintendo's other directors would take a 20 percent salary price cut. Iwata added, " ... the deduction of the fixed compensation is what we volunteered to do in order to show our sincere attitude and to fulfill our responsibility. We really must recover our financial performance and take Nintendo back into the position in the marketplace where it is well appreciated."

On Friday, Nintendo's stock price plummeted down 20 percent after the company announced much lower than expected financial results. Part of the reason was the poor sales of its new Nintendo 3DS portable game console. Nintendo also announced a big price cut in the 3DS, from $249.99 to $169.99 beginning on August 12. In his statement to shareholders, Iwata said, " ... one of the things we have learned is that it has taken longer than we had originally expected in order for the appeal of this product to widely spread. We feel that those who have experienced the system appreciate its attraction, but this appreciation has not necessarily been expanding at the speed which we had expected." Iwata said that price cut should expand the user base of the 3DS, adding, "Without creating such a circumstance, we would not be able to realize explosive sales in the year-end sales season."

Report a problem with article
Previous Story

Microsoft's donated 3.9 billion dollars to non-profits to date

Next Story

12 companies own patents essential to Google's VP8 codec

7 Comments

Commenting is disabled on this article.

"take a 50 percent cut *in his fixed salary*."

I wonder how much of his actual income the fixed salary represents.

Lazlo said,
"take a 50 percent cut *in his fixed salary*."

I wonder how much of his actual income the fixed salary represents.

you make a good point.. his fixed salary (so he can ensure if there is a bad year that he can live) is probs 200k? then he gets any scrapings off the top if its a good year probs like 1-2% of the company profits

i agree good on them i wish the english MPs would take salary cuts (they are on 100-600k a year some of them ) and dont have to pay living costs...

but even with this cut how much do they earn anyway ? does this mean they have to trade in there lotus for a mazda spyda

SPEhosting said,
i agree good on them i wish the english MPs would take salary cuts (they are on 100-600k a year some of them ) and dont have to pay living costs...

but even with this cut how much do they earn anyway ? does this mean they have to trade in there lotus for a mazda spyda

Look up Hone Harawira if you have time. This guy wasted 1/2 a million dollars forcing a by-election because he got kicked out of his party and started a new one. Now he reckons he's "for the people", when he's earning >4x as much as the people he's supposedly for.

Not many company Execs do that so good on them but I am sure they didn't have much of a choice, Nintendo really needs to step up the game if they want to be around much longer IMO.

NoLiMiT06 said,
Not many company Execs do that so good on them but I am sure they didn't have much of a choice, Nintendo really needs to step up the game if they want to be around much longer IMO.

Nintendo has more cash in the bank than most, and has made profit on every Wii and DS ever made , from day one .... Saying they won't be around much longer is absolutely ludicrous. They just want to make larger profits, as every company strives to do. It's nothing to do with them going bust.