May 20, 2026 – Nikon is slashing executive pay by up to 10% as the Japanese imaging giant grapples with mounting financial headwinds, marking one of the most aggressive cost-cutting moves in the company’s recent history.
The camera and precision equipment maker revealed on Tuesday that fixed salaries for its board members and executive directors will be reduced on a tiered basis throughout the fiscal year running from April 2026 through March 2027. Notably, external directors and auditors will be spared from the pay cuts.
The decision comes on the heels of a difficult fiscal year. For the 12 months ending March 31, 2026, Nikon posted revenue of ¥677.1 billion, a 5.3% decline from the prior year. The company swung to an operating loss of ¥112.4 billion, while net losses attributable to shareholders ballooned to ¥86 billion.
Nikon attributed the revenue contraction largely to weaker sales in its precision equipment segment, which has faced softening demand across several key markets.
Beyond the pay reductions, Nikon is also overhauling its equity-based compensation structure. Performance-linked stock awards will now be disbursed only after each fiscal year concludes, a shift from the previous arrangement. The company described the changes as a deliberate response to revised financial forecasts and dividend expectations for the current year.
Still, not all segments are struggling. Nikon’s core imaging division held up relatively well, with revenue edging down just 1.8% year-over-year. Camera shipments actually grew, fueled by strong reception of mid-range models like the Z5 II and Z50 II, as well as the company’s debut digital cinema camera, the ZR.
Looking ahead, Nikon is projecting a 9.3% revenue increase for fiscal 2027, along with a return to profitability. The sweeping compensation reforms are being framed by company leadership as a decisive step to realign incentives, bolster investor confidence, and set the stage for a sustained recovery.
