Rank the Presidents of Nintendo

[bdbdbd]

Doctor_MG said:

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. 

Ok. First you need to understand that Nintedo has and had quite a lot of assets, and in order to make investors happy by giving out dividents, they can use their money in the bank instead of cutting costs by layoffs and downsizing and make better  short term profit at the cost of long term gains. They have money they can keep investing in future products so they don''t need to lay anyone off.

Downsizing and layoffs are made if future prospects look bad or you're running out of money. If a company share loses value, what investors expect is that the company invests to something that makes money. Investors who bought the expensive stock because of good dividents and expectations for it to keep it's value, surely expect the company to return to high profit and high value, and this can be done by investing. If you just buy and sell on short term that benefits from quick change of share value and you bought the cheap stock, then yes, you might want to hear about downsizing, but if you bought the expensive stock and plan to keep it for longer period and make money by dividents, then you gain the most from investing. 

If I use my own investments as an example, I have lots of Nokian tyres in my portfolio. I started buying it after the value crashed when Russia attacked Ukraine and sanctions were raised against Russia which caused Nokian tyres having to shut down it's Russian factory - where most of their tyres were made and they also needed to mark down The whole factory due to sanctions. At the moment the company's value is less than a quarter of the value it was before Russian invasion. What the investors are waiting at the moment, is for Nokian tyres new facilities to start (investments to start paying off) and The company starting to make money again. Nokian tyres have also been pretty good with dividents, so you might get good dividents for fairly cheap share price.