Sharp Cancels Cuts to Raise Morale

Sharp’s Tai Jeng-wu (left) and Foxconn’s Terry Gou (right). Image: Nikkei.Japan’s Sankei Shimbun and Nikkei Shimbun quote Sharp president Tai Jeng-wu as saying that he will cancel a base and managerial salary reduction at the company, in an effort to raise employee morale. Tai will also forgo his salary as a member of Sharp’s board.

The salary reduction cancellation reverses a move made in August last year, where base salaries were reduced by 2% and managerial salaries by 5%. It will take place next month at the earliest, Tai said. It appears that employees will be compensated through subsidies, and managers will be able to earn performance-related bonuses.