Sumitomo Pharma extends executive pay cuts amid financial strain

Sumitomo Pharma (TSE:4506) today announced the extension of executive pay cuts, reflecting the company's ongoing efforts to recover from financial difficulties. The reductions, initially implemented in May 2024 and scheduled to end in March 2025, will now continue from April 2025 through June 2025. The decision comes as Sumitomo Pharma faces a challenging business climate and anticipates no dividend payout for the fiscal year ending March 31, 2025. Under the extended plan, the base remuneration for the Representative Director, President, and CEO will be reduced by 30%, while other directors (excluding outside directors) will see a 20% decrease. Additionally, performance-linked remuneration (bonuses) for all eligible directors for the fiscal year ended March 31, 2025, will be cut by 100%.