SoftBank cuts executive pay after Vision Fund posts record loss

SoftBank slashes executive salaries after historic results from its Vision Fund Loss of 3.5 tons ($27.6 billion) Impacted by a slump in tech stocks, rising interest rates and a regulatory crackdown in China.

billionaire Softbank According to regulatory filings with the Tokyo Stock Exchange, founder Masayoshi Son’s compensation was steady at 100 million yen. But Chief Financial Officer Yoshimitsu Goto earned 293 million yen ($2.3 million) in the last fiscal year ended March 31, down from 480 million yen a year earlier, according to Miyagi, who oversees SoftBank’s telecom business. Ken Miyauchi’s revenue was 593 million yen, compared with 635 million yen last year.

The Vision Fund’s performance propelled Son’s tech group to a record quarterly net loss of 210 million yen in the fourth quarter, as Chinese ride-hailing group Didi Chuxing and South Korean e-commerce platform Coupang underperformed.

“The performance of the Vision Fund clearly has an impact on executive compensation,” said Redex Research analyst Kirk Boodry.

“My son’s salary doesn’t have much impact on his net worth, which is closely related to the performance of SoftBank stock considering his stake in the company,” he added. Masayoshi Son owns about a third of the group.

Earlier this month, Son tried to reassure investors that SoftBank’s debt load was manageable, when he revealed historic losses in an unusually somber speech.

Some investors and analysts have expressed concern about SoftBank’s financial health, as the company has used stakes in companies such as Chinese e-commerce group Alibaba and British chip designer Arm in part to secure loans to raise fresh investment capital.

Son said the company’s loan-to-value ratio of 20.4% was below the 25% threshold he had vowed “under normal circumstances”.

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

The documents, filed ahead of SoftBank’s annual meeting on June 24, also show the tech group has cut borrowings by its main lender and Japan’s third-largest bank Mizuho by 4.5 percent to 812 billion yen.

Mizuho chief executive Masahiro Kihara told the Financial Times last month that he was “Totally don’t care” Despite the sell-off in tech stocks, it’s all about SoftBank’s financials.

Goto described the relationship between SoftBank and its main bank as “absolute trust.”

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

The documents do not reveal how much Vision Fund head Rajiv Misra, a former Deutsche Bank trader, made in the last fiscal year.his pay Two years ago, when SoftBank posted its worst earnings on record, its stock price more than doubled, sparking controversy among employees.

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