Company CEOs are essentially like the president of a nation. They make decisions, but can’t act without approval from another part of the company (the board/congress) on most things, and when the company does well, or poor, they take all of the credit for it. They are the praised hero that’s supposed to say that all the hard work from their employees is what drive the company to be great, while at the same time, accepting the full blame when things go wrong. American companies often give huge bonuses and gifts to CEOs, even when their profits tank. In Japan though, there’s still honor left in the corporate world, and Satoru Iwata, the Nintendo CEO will cut his salary in half after their profits dive.
President Satoru announced today that, amid a record tumble in profits, he will be cutting his salary in half. According to AFP, Satoru will receive half of his usual salary for the next five months. Moreover, the Nintendo board members will also take a pay cut, dropping 20 to 30 percent of their usual salaries. This coming after the announcement of revenues dipping by over 8% during the last nine months of 2013, as the Wii U ultimately flops with XBOX and Playstation offering so much competition over their new console.
What do you think?
Do you think American CEOs should live by the same code of ‘honor’ here, or do you believe the current treatment of corporate executives is fine the way it is? Maybe things should be even worse for them? Let us know your thoughts in the comments below.
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