Sony chiefs give up payouts over electronics loss

EXECUTIVES at Japanese electronics firm Sony are giving up their bonuses for the year after they failed to turn a profit in the consumer electronics business.

Around 40 top staff – including chief executive Kazuo Hirai – will forgo their payouts worth up to 50 per cent of their pay ahead of Sony’s full-year results next week. These are widely expected to show a loss in consumer electronics.

The act of contrition from executives comes despite Sony doubling its full-year profit forecast to ¥40bn (£263m).

Last year, former chief executive Howard Stringer and a handful of other staff waived their bonuses when Sony posted an annual loss.

Hirai took over the top job last April, having previously headed Sony’s video games business.

He said on his promotion that he would make “painful” cuts to the company to restore profitability.

Hirai agreed to sell the firm’s US headquarters building in New York City and another office block in Tokyo for a total of $2.2bn earlier this year.

He has also booked gains by disposing of several shareholdings in other companies including social gaming group DeNA.

Sony is redoubling its efforts on consumer electronics, with a focus on mobile phones and tablets, cameras and gaming, but has yet to end losses in the division.