Toyota's Akio Toyoda Banked $2.84M In 2014
In a regulatory filing made Wednesday, Toyota President Akio Toyoda made ¥352 million ($2.84 million USD) in total 2014 compensation.
Toyoda’s 2014 payout is split between his standard ¥103 million ($830,000) salary and a bonus of ¥249 million ($2 million), Reuters reports. The 2014 bonus is nearly double the ¥127 million ($1.02 million) paid in 2013.
Though Toyoda’s compensation still bests Honda’s Takanobu Ito’s ¥150 million ($1.21 million) thus far, Renault-Nissan’s Carlos Ghosn dominates the Tohosan Zaibatsu on the Nissan side alone, having banked ¥1.035 billion ($8.39 million) in 2014; Renault added €7.2 million ($8.17 million) for his part of the Tricolore Français.
Toyota’s fortunes rose in 2014, as well. The automaker reported a 19 percent boost in net profit for the year ending this March, pulling in a total of ¥2.17 trillion ($17.5 billion), a new record for the third consecutive year.
(Photo credit: Toyota)
His net worth is a billion dollars.
Having lived and worked 10 years in Asia and worked closely with European and Australian colleagues and external auditors, I am reasonably confident in saying the CEO getting $2mm to $4mm in TOTAL compensation is more of the norm in the rest of the world and not an exception whereas in the US, this would be considered to be pittance. As for the comment about his family ties to Toyota and the insinuation that his net worth allows him to take the low salary as some sort of public relation stunt, that's true, but CEOs total compensation at Honda, Toshiba, etc. also are a literal fraction of US CEOs in the same industry. As for the notion of long term performance being tied to stock and shareholder, the glamorization of that theory has been shown to be bunk. As mentioned by Redav above, the short term greed in human nature have influenced CEOs to focus on short term gain. Even if the CEO takes a long term, he/she are forced by shareholders (key "active" shareholders) to take a short term action to get the share price up. We tend to look at things through US lens as if ours is the norm and that is usually not the case.
Remember that the CEO's compensation sets a ceiling for other executives in the organization. GM, Ford, etc set the compensation for their numerous Vice Presidents based on the CEO's. It then filters down through the senior executive ranks. So by ensuring a lower compensation rate for their CEO's the Japanese companies also ensure that their other executives' pay is more in-line with that of their regular workers. Also the organizational chart in Japanese firms is generally 'leaner' than in American firms, meaning less layers of executives to pay these exorbitant sums to.
You could buy a lot of Oxy from your in-office dealer Julie Hamp with that kinda scratch.