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| bdbdbd said: Actually, it's a custom in Japan that the CEO takes a paycut when the company is doing worse. It had nothing to do with layoffs or lack of them. What Iwata is talking about to investors is that Nintendo isn't planning to downscale but to invest in the future - layoffs are out of the question. When you're a CEO of a publicly traded company, in most parts of the world, sharing information is what you're legally required to do |
There are plenty of Japanese companies that have laid off staff without taking a pay cut. While it may be customary to take a pay cut, the option for laying off staff is always there. This suggestion of it was never a possibility is a near sighted one. Maybe it wasn't likely that they would based on the culture of Nintendo, but it was absolutely a possibility with how much money they were losing.
If you are a publicly traded company and you are losing money the best way to please investors is to reduce spending. The quickest ways to reduce spending are laying off staff or cutting salaries. Even if one is chosen over the other they are both options.
