I / Osaka May 20, 2009, 10:58 IST
Japan's Panasonic Corp plans to cut the annual pay of its president and chairman in the current business year by 30 per cent to take responsibility for the company's projected financial deficit in fiscal 2009, company sources said today.
The pay cuts will target president Fumio Otsubo and chairman Kunio Nakamura, and other board members will see their pay slashed 20 per cent, they said.
The Japanese electronics giant incurred a group net loss of 378.96 billion yen in fiscal 2008, its first deficit in six years, and is also expecting a second straight annual net loss totaling 195 billion yen for fiscal 2009.
Panasonic, formerly Matsushita Electric Industrial Co, had already cut remuneration for board members between 10 to 20 per cent and for those on managerial positions by five per cent since February due to the deterioration of its corporate performance.
Further top management pay cuts are part of the electronics maker's restructuring efforts that include cutting 15,000 jobs and closing a total of 40 production facilities worldwide by the end of fiscal 2009.