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Square Enix Directors Taking Voluntary Pay Cut
Now That's How You Handle an Economic Crisis
by Sarah
The economy is in the shitter, and everyone is losing money. Video game publishers are cutting funds and laying off staff left and right. What’s a major publisher to do? Do you screw over your employees so that the top tier can continue to be ridiculously overpaid? Well, some companies do. Not Square Enix, though! Squenix head honcho Yoichi Wada announced recently that the three executive directors at the company (himself included) would be taking a 15% pay cut for an indeterminate amount of time. “In the meantime,” he stated, “we intend to stand up straight and push ahead with reforms.”
I must say, I am impressed by this move. Sure, in tough monetary times, it may make the most sense for the people who make the most money to take pay cuts so that other employees don’t have to, but how often does that actually happen? Almost never, that’s how often. Midway (and other companies in the same boat), I hope you’re paying attention.
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Comments
You know why I love this move? Because it shows that he sincerely wants to turn his company around. And that doing so requires sacrifice from everyone, not just the bottom of the totem pole. He's setting himself apart from all his contemporaries who are furiously packing their golden parachutes, which is part two of "Why I love this move."
It's a huge PR boost. And it'll probably make him more money that the pay cut will cost him. A 15% pay cut for a CEO is not really a big deal. The dude is still rich and still gets a paycheck bigger than anything I'll ever make. But the fact that he's falling on his sword to save his company is gonna attract support from investors and consumers and rebuild confidence in the company, which is what you need to bounce back from a loss. It seems so obvious, I'm not sure why no one else is doing it.
I'm not that surprised by this. It shows the difference in culture in general. CEO's in japan are more about the country than the individual, while in America and pretty much any occidental areas, it's the "Me Me Me" mentality that goes above all else.
As shows by the ridiculous amount of "Bonuses" CEOs are getting even though they're the ones to blame for the crappy economy they ushered us in.
Voyou is absolutely right. It's a cultural difference that the CEO exists not only to increase shareholder value, but also to provide continued employment for the staff. This is not just a great PR move (as loltim pointed out), it also makes good business sense. A company that has to lay off employees is going to have a harder time rebuilding than one that holds onto its already trained and motivated labor force.
voyou is right? ?? DAMN RIGHT I AM!!