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SoftBank cuts top executives’ pay after Vision Fund posts record loss

SoftBank has cut pay for its top executives after its Vision Fund hit historic levels Loss of 3.5 trillion yen ($27.6 billion) caused by a collapse in technology stocks, rising interest rates and a regulatory crackdown in China.

billionaire SoftBank Founder Masayoshi Son’s salary has remained steady at 100 million yen, according to official filings with the Tokyo Stock Exchange. But chief financial officer Yoshimitsu Goto earned 293 million yen ($2.3 million) in the past fiscal year ended March 31, up from 480 million yen a year earlier, and Ken Miyauchi, who heads SoftBank’s telecom business , earned 593 million yen (US$2.3 million) compared to 635 million yen.

Vision Fund’s performance led Son’s tech conglomerate to post a record quarterly loss of 2.1 trillion yen in the fourth quarter, attributed to underperformance by Chinese ride-hailing group Didi Chuxing and South Korean e-commerce platform Coupang was.

“The performance of the Vision Fund will obviously impact what top executives are paid,” said Kirk Boodry, an analyst at Redex Research.

“The son’s salary doesn’t really have a huge impact on his net worth, which is much more closely related to how SoftBank’s stock is performing given his stake in the company,” he added. Son owns about a third of the conglomerate.

Son tried to reassure investors earlier this month that SoftBank’s debt burden was manageable when he revealed the historic loss in an unusually somber presentation.

Some investors and analysts have raised concerns about SoftBank’s finances, as the company has used stakes in companies like Chinese e-commerce group Alibaba and British chip designer Arm to get loans to raise new investment funds.

Son said the company’s loan-to-value ratio is 20.4 percent, below the 25 percent threshold that he doesn’t want to cross “in normal times.”

He added that the company would take a more “defensive” stance, or slow down investmentsbecause of the volatile market.

The filings, made ahead of SoftBank’s annual meeting on June 24, also showed that the tech conglomerate had slashed borrowings from Mizuho, ​​its main lender and Japan’s third-largest bank, by 4.5 percent to 812 billion yen.

Mizuho chief executive Masahiro Kihara told the Financial Times last month he was “completely unconcerned” on SoftBank’s financial health despite the sell-off in tech stocks.

Goto has described the bond between SoftBank and its house bank as “a relationship of absolute trust”.

Borrowing from Wall Street banks also fell, with lending to SoftBank from JPMorgan and Goldman Sachs falling 23 percent and 39 percent, respectively.

How much Rajeev Misra, a former Deutsche Bank trader who heads the Vision Fund, made in the past fiscal year was not disclosed in the filing. His Counting more than doubled when SoftBank reported its worst-ever performance two years ago, sparking controversy among employees.

SoftBank cuts top executives’ pay after Vision Fund posts record loss Source link SoftBank cuts top executives’ pay after Vision Fund posts record loss