Comments on: Toyota May Cut Executives’ Salary

By: ferrarimanf355

ferrarimanf355 — Thu, 20 Nov 2008 19:54:43 +0000

Toyota should kill their useless F1 program and funnel that money towards bringing back the Supra. Just a thought.

By: argentla

argentla — Thu, 20 Nov 2008 19:22:02 +0000

“a pursuit in which they need no special assistance”

Muahahah!

By: autonut

autonut — Thu, 20 Nov 2008 18:21:04 +0000

@jgholt,

Although auto industry (as well as banking, investing and a slew of other industries), there is a large number of executives who are quite entrepreneurial and risk everything (salary, perks) while starting new businesses with only prospect of business getting larger and them cashing on later (CISCO, Microsoft, Google, Sun, Oracle, hedge funds). 60% of Americans are working in smallish enterprises, where bosses sharing with employees profits and tribulations in life. The reason most of us disgusted of what is going with big 3, because at this point everyone associated with those entities in minority (management, union bosses and members).

By: vento97

vento97 — Thu, 20 Nov 2008 18:14:19 +0000

At least Toyota gets it.

The Three Stooges, however, don’t get it:

http://www.cnn.com/2008/US/11/19/autos.ceo.jets/index.html

By: jgh

jgh — Thu, 20 Nov 2008 16:32:07 +0000

That’s because as Americans, we don’t believe in a performance based pay culture. The perfect example (looking outside the Detroit bubble) resides on Wall Street (golden parachutes) and the NBA/MLB – where alleged “stars” are paid bazillions for riding the pine.

By: jkross22

jkross22 — Thu, 20 Nov 2008 16:31:02 +0000

RF,

Saying Toyota is likely to cut exec salaries sounds like the Kabuki theater we just watched over the last few days in Warshington with the 3 savants from Detroit. It matters much less what is likely compared to what is.

Mulally was a big disappointment. How can he expect to have Ford employees follow his lead when it’s clear that fat cat approach he’s taken is part of the problem? When/if Ford returns to profitability, everyone should share in that success, but coffer draining exec compensation is not the “way forward”.

By: Stein X Leikanger

Stein X Leikanger — Thu, 20 Nov 2008 16:14:48 +0000

Toyota should do what any self-respecting auto company does: file to become a bank, in order to dip into Bailout moolah easier.

GMAC goes all banky on us today.
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/20/AR2008112001459.html?hpid=topnews

And Newsweek’s Conventional Wisdom indicator doesn’t like auto exec travel modes:
http://www.newsweek.com/id/41964

By: Steven Lang

Steven Lang — Thu, 20 Nov 2008 16:13:23 +0000

Well, perhaps changing the title to ‘may’ instead of ‘to’ would reconcile the current state of things. A slinging match would detract from the key point of this article which is far more important.

When it comes to Toyota, I agree with Robert on what MAY happen. Toyota’s management has a very good record of leading by example in turbulent times and I couldn’t think of a better reality check to Detroit’s leadership than a profitable automaker that’s willing to voluntary cut executive compensation. The same goes for Toyota’s rank and file who are seeing the firsthand effects of a slowing global economy.

The real question is, “Why didn’t THEY think of that?”

By: Facebook User

Facebook User — Thu, 20 Nov 2008 16:07:25 +0000

A 76% decline in profit; when’s the last time that Red Ink Rick was able to report a decline in profit? It seems to me it’s been varying levels of loss for several years now, and it doesn’t seem to have affected his salary (or conscience) at all. Well, at least not negatively.

By: Dorri732

Dorri732 — Thu, 20 Nov 2008 16:07:20 +0000

Robert, it’s not a matter of whether it’s likely or not, it’s a matter of trust (of you, on our part). You continually blast other media for presenting unsubstantiated rumors as fact, yet this is very similar.

Though to be fair, it’s only the headline that’s questionable. The rest of the article is spot-on.

By: Robert Farago

Robert Farago — Thu, 20 Nov 2008 16:01:51 +0000

Anyone want to bet that Toyota won’t cut executive salaries?

By: brettc

brettc — Thu, 20 Nov 2008 15:59:37 +0000

The article says they may cut executives salaries. But even if they don’t, I believe Toyota executives make less than any of the Detroit executives. Plus Toyota executives are responsible for long term product planning to ensure the success of the company. GM executives are responsible for day to day non-planning to ensure running of out money.

By: compy386

compy386 — Thu, 20 Nov 2008 15:56:54 +0000

Your title is off base from your link. The article says “Toyota Motor Corp. will consider cutting the pay of its directors in fiscal 2009, it was learned Wednesday.” It doesn’t say it has or will. The article also states that Executive pay in 2008 is up 17% year over year.