TOKYO - THE head of Japanese computer chip maker Elpida Memory will work for free in a symbolic gesture to help turn around the group's poor performance, the company said on Monday.

While Japanese executives often cut their own pay as punishment for a company's bad performance or wrongdoing, it is highly unusual for a corporate chief to work completely for free.

Elpida president Yukio Sakamoto will accept no salary in November and December and still slash his salary by at least half until the company starts making a profit, the firm said.

Elpida, a leading producer of dynamic random access memory (DRAM) chips used in cellphones and home electronics, said the decision was symbolic and would not substantially impact the company?s financial condition.

'He wanted to show his strong determination to shareholders to turn around the company's performance,' Elpida spokesman Kumi Higuchi said. |

She declined to specify Mr Sakamoto's salary but said it was already below the average for the president of a listed Japanese company, which she put at 50 million yen (S$724, 133) a year.

Japan has traditionally prided itself on the small disparity in salary between executives and rank-and-file workers.

The situation contrasts sharply with that in the United States, which has witnessed public outrage at multimillion dollar severance packages for executives leaving companies wracked by the global financial crisis.

Elpida expects to fall into the red in the six months to September, posting a net loss of nearly 46 billion yen as chip prices fall and global demand slows.

The company announced earlier this month that it will boost capital by 160 billion yen by means such as issuing corporate bonds. oh/sct/dan