Panasonic president faces 60% salary cut

Struggling Panasonic Corp. will halve remuneration for its president and incoming chairman from July from a year earlier to make clear their responsibility for the deterioration in earnings, Fox Business reported.

The Japanese electronics maker has already implemented 10 to 20% cuts in directors' salaries since February 2009 in the face of the fall in its earnings. On top of that, the directors have voluntarily returned some of their salaries.

The latest move means that President Kazuhiro Tsuga and Executive Vice President Shusaku Nagae, who will become chairman in June, will face a 60% salary cut, compared with the level before February 2009, and other executives a 30% cut.

Panasonic is also in talks with its labor union to effectively cut employees' salaries by several% from this May to March 2014 by extending their working hours.