Nintendo directors are getting their first pay bump in years following the massive success of the Japanese gaming company back in 2020.
According to a report by Nintendo, its top three directors gained a chunky raise. They gained approximately $2 million in performance-based compensation. While this is low by industry standards, there’s a clear reason for these numbers.
Nintendo gives $2+ million performance compensation
Last year, Nintendo got a record year during the pandemic. With the release of Animal Crossing: New Horizons and cooped up gamers, fans took it upon themselves to keep playing. This resulted in an extremely profitable fiscal year for the company.
The Nintendo Switch became the best-selling console of the first half of 2021. Animal Crossing also accounted for 10% of the sales for the platform, followed by Mario Kart 8 Deluxe.
Within the 82-page financial report, Nintendo listed the performance-based compensation given to their top three directors. These were massive by their local standards.
For example, Nintendo President Shuntaro Furukawa will get an extra 240 million yen. This amount translates to around $2.19 million dollars (1 dollar = 109 yen). The number goes on top of their fixed annual compensation, listed at 78 million yen ($710,500).
Shigeru Miyamoto also got a fat cheque, getting an extra $1.64 million on top of his $655,000+ compensation. Shinya Takahashi got an additional $1.64 million too on top of his fixed $109,000+ compensation.
Nintendo stays humble in contrast to other studios
Nintendo directors are notably paid much less compared to their Western counterparts. Activision CEO Bobby Kotick, for example, pocketed a chunky $155 million last month. Kotick made headlines, especially with the layoffs in their company.
The Japanese company is going the other director compared to their peers. For starters, the money they got this year comes with the performance of the company. Their base salaries remain unchanged, even with all the work they did.
In addition, the average salary for Nintendo Japan employees comes at $88,276. The average age for the company’s employees comes at almost 40 years old. Their average length of service also comes at a whopping 14.2 years.
So far, Nintendo has around 2500 employees, in Japan, with a total of 6500+ employees across the group. The company also does not have labor union issues as per the report, with “no particular matters to be noted” in union relations.
Nintendo directors are doing opposite of what their western counterparts. It shows not only the humility of the employees but the positive group dynamics of the company itself.
Featured image courtesy of IGN/Youtube Screenshot