OSAKA -- Electronics maker Sharp will pay bonuses three times a year instead of two under policies unveiled Tuesday, aiming to motivate employees to work harder.
CEO Tai Jeng-wu announced the change in a message to staffers. He had said last month that his goal was to pay bonuses four times a year to reflect quarterly earnings in employee compensation. Tai was sent over from Hon Hai Precision Industry, or Foxconn, when the Taiwanese company acquired Sharp in 2016.
Jumping right to four bonuses a year was not practical for pension and other reasons. Sharp will instead offer bonuses in March, June and December to tie personal and team performance to pay more quickly.
Well-performing teams may receive up to one more month's worth of pay a year in bonuses. Money-losers could see their bonuses halved because the performance-related portion -- half the total -- will basically be zero.
Managerial-level employees will be the first to join the new scheme from December, with other staffers added by fiscal 2020.
Tai also announced the establishment of two new companies to handle the "internet of things": one for consumers, and the other for corporate clients. Starting in October, they will be tasked with growing business in this area, until now handled by Sharp itself. They will seek to push ahead with outside partnerships, including the possibility of capital tie-ups with other companies, as Sharp looks to accelerate IoT development.