Toyota May Cut Executives' Salary
The cynical amongst you will see this as a direct rebuke to Detroit: a shot across the bow of the Big 2.8 execs who sat in front of America’s duly elected representatives and refused [almost] point-blank to take a pay cut, whilst asking for a $25b federal “bridging loan.” And so it is. But anyone who thinks Toyota is trying to make Motown look bad– a pursuit in which they need no special assistance– doesn’t have a grasp on the “Toyota Way.” Even before this auto sales meltdown, the Japanese automaker’s top ten execs earned less money COMBINED than Ford’s Alan Mulally, Chrysler’s Bob Nardelli and GM’s Rick Wagoner (individually). In fact ALL of Toyota’s execs together earned 3.92b yen. That’s $40.5m. And now Yomuiri reports “Toyota Motor Corp. will consider cutting the pay of its directors in fiscal 2009, it was learned Wednesday. The aim of the nation’s top automaker is to clarify the executives’ management responsibility after the company announced last week that it expected a 73.6 percent dive in group operating profit for fiscal 2008, due to sluggish new car sales resulting from the global economic downturn. Toyota also expects reducing the remuneration of its directors to set an example as the company prepares to embark on thorough cost-cutting.”
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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
@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).
"a pursuit in which they need no special assistance" Muahahah!
Toyota should kill their useless F1 program and funnel that money towards bringing back the Supra. Just a thought.