by Toyota Chairman’s Salary: Record Payments
Former Toyota CEO Akio Toyoda, who now serves as chairman of the board, received 1.95 billion yen ($13.5 million) for the past fiscal year. This is the largest compensation in the company’s history, despite Toyota’s operating profit falling by 10%. The company’s president, Koji Sato, earned significantly less — $5.67 million.
Although the amount seems enormous, it falls short of the salaries of executives at other auto giants. For example, General Motors CEO Mary Barra received $23.9 million, and Ford’s head Jim Farley received $24.9 million. The situation is similar among European and Asian competitors: the heads of Volkswagen, Hyundai, and Renault also receive multi-million dollar compensations.
The increase in Toyoda’s salary is linked to Toyota’s transition to global pay standards. The company also abandoned individual bonuses for top managers, focusing on overall performance indicators. Interestingly, even during difficult times for the company, executive compensation remains high, raising questions about the effectiveness of such expenses.
