Kuaikeji, May 20 - According to media reports, Nikon recently announced that it will reduce the fixed compensation of directors and executive directors by up to 10% in the fiscal year from April 2026 to March 2027 to drive performance recovery amid severe financial challenges.

According to the latest financial report, Nikon's revenue for the 2026 fiscal year (ending March 31, 2026) was JPY 677.1 billion, down 5.3% year-on-year, with an operating loss of JPY 112.4 billion and a net attributable loss of JPY 86 billion.

Nikon stated that the revenue decline was primarily dragged down by reduced sales in its precision equipment business. As a result, Nikon decided to cut the fixed compensation of internal directors and executive directors based on their ranks, while outside directors and audit committee members are excluded from this pay cut.

Additionally, Nikon has synchronization (synchronized/concurrently, hereafter omitted in translation for conciseness while keeping meaning) revised its performance-based stock compensation plan, adjusting the bonus payout timing to occur after the end of each fiscal year. The company said these adjustments are based on prudent considerations of the financial forecasts and dividend expectations for the current fiscal year.

Despite overall performance pressures, Nikon's imaging business remains relatively stable. In the previous fiscal year, revenue for the imaging division only slightly declined by 1.8% year-on-year, with camera sales growing against the trend, mainly due to the favorable market reception of mid-range models like the Z5 II and Z50 II, as well as the first digital cinema camera, the ZR.

Looking ahead, Nikon expects group revenue to grow by 9.3% in the 2027 fiscal year and to return to profitability. The pay cut for executives and the reform of the compensation system are seen as key steps by management to boost confidence and drive performance back onto a growth trajectory.