Nintendo President, board members face pay cuts in 2014

Nintendo is experiencing financial hardship, as it slips behind gaming competitors Sony and Microsoft.

Nintendo is experiencing financial hardship, as it slips behind gaming competitors Sony and Microsoft.

About 15-20 years ago, the Nintendo game consoles reigned king. Consumers all over the world enjoyed the likes of Mario, Donkey Kong and Pokemon on multiplayer and single player systems. Now the gaming industry is not in their favor, falling behind competitors Xbox and Sony.

Recently, the Japanese business announced sales dropped 8 percent in 2013, and now, Thursday's 3 percent share reduction is on the horizon, the Agence France-Presse (AFP) reported. 

"Players' sentiment reversed sharply immediately after Nintendo's news," Kenzaburo Suwa, strategist at Okasan Securities, told the AFP. "The market had expected something new related to smartphone businesses, but the results just disappointed the market."

As a way to remain competitive in the 21st century's market, Nintendo President Satoru Iwata recently said that they will buy back 8 percent of its shares as well as take a 50 percent pay cut for five months. Additional drawbacks include a 20 to 30 percent pay reduction for board members and lower circulation of Nintendo's newest products.

Nintendo's decision to cut wages may come as a surprise, but they aren't the only business to do so. In fact, about 12 percent of American workers recently said that they are expecting a pay cut this year.

Compensation arrangements are the types of administrative items that can be easily tracked by an organization. This will free up HR departments to interact directly with employees, face-to-face.