By on June 24, 2015

2013_Toyota_NDM_Akio_Toyoda_002

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)

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26 Comments on “Toyota’s Akio Toyoda Banked $2.84M In 2014...”


  • avatar
    andyinatl

    Toyota CEO makes $2.84mil in 2014
    GM CEO makes $16mil in 2014
    Ford CEO makes $18mil in 2014
    FCA CEO makes $38mil in 2014

    So the most successful company on this list pays its CEO reasonable salary and gets a great return on investment, while the worst company pays its CEO exorbitant amount of money while being in the dumps and looking for someone to merge with…. Lesson of the day; if you want to be a successful company, don’t overpay your CEO?….

    • 0 avatar
      Stumpaster

      Exactly, this weeds out the blowhards and other corporate clowns.

      • 0 avatar
        bd2

        In 2010, then Ford CEO Mulally got over $26.5 million in total compensation.

        Ford Jr., got almost $26.5 million and all told, the top 6 Ford execs got a whopping $75 million in compensation.

        That year, Ford Motor made $6.6 billion in profit, which while not bad, was nothing compared to what Toyota is making now or what VW was making back then (VW CEO, Winterkorn, made less than half of what Mulally pulled in even tho VW made more in profit than GM, Ford and Chrysler combined for 2010), and Ford was much further off in paying off its humongous debt load at that juncture.

    • 0 avatar
      tonycd

      GM’s CEO makes $16 million.

      Consider this: If they replaced GM’s CEO with one of several experienced GM executives who’d be glad to do the job for $1 million, where would the remaining $15 million be best spent? On one of GM’s many other priorities, or on an additional $15 million to get back the previous CEO?

      Multiply that question by the hundreds of companies whose CEOs and board members are in an interlocking network on the take, and you’ve got the essential absurdity of executive compensation in today’s America.

    • 0 avatar
      VCplayer

      To be fair, I’d want crazy amounts of money to run a company that’s as much of a basket case as FCA probably is.

    • 0 avatar
      redav

      WSJ reports CEO pay could be reduced without hurting economic growth or productivity. I agree with that assessment. If it’s fair to pay an employee in terms of how much value they bring to the company (as measured by increased revenue/profit), then most top CEOs absolutely get paid too much.

      http://blogs.wsj.com/economics/2015/06/22/top-ceo-pay-isnt-driven-by-talent-new-study-says/?mod=e2fb

  • avatar
    CJinSD

    Maybe this is why Toyota thinks about the long term while US auto company CEOs think about cooking the books long enough to get a golden parachute.

    • 0 avatar
      redav

      Having experience with an ultra-large US corporation, I agree that many of the ‘shining stars’ that have their eyes set on being CEOs move into a new position, change a bunch of stuff, and then jump to their next new position as all the changes they’ve made start to hit the fan. Then, the next rising ‘star’ moves in and makes a bunch of changes to fix what the prior ‘star’ did and then leaves as their changes hit the fan. Repeat ad nausium.

      I find that these types care only about themselves, their success, and what they can leach out of others. They don’t lose a wink of sleep no matter how much damage they do to others.

  • avatar
    kmoney

    The CEO one of the largest and successful automakers in the world makes less that the the CEO of lots of small-cap companies. That’s impressive and sad all at the same time — definitely says something about corporate culture over there.

    • 0 avatar
      ccode81

      How much money the U.S President, the most powerful man in the world makes?

      • 0 avatar
        redav

        Before or after?

        Their salary while president is only something like $400k, but all expenses & perks are paid. However, once they are out (or maybe even while they are still in), people throw money at them at an obscene clip. Former presidents, congressmen, cabinet members, etc., become fabulously wealthy from what amounts to endorsements (e.g., several hundred grand per speaking engagement, millions for book deals that they don’t even write).

        Just look at the rise in wealth of the Clintons & Obamas due to presidency. (I would include the Bushes, but they were quite wealthy before the presidency.)

        • 0 avatar
          bd2

          Obama made his $$ before he became President from his best selling books.

          GW Bush made his $$ from his role as being the public face/cheerleader for getting the good people of Arlington, TX to pony up $$ for a new baseball stadium for the Rangers.

          With the a new stadium built, Bush’s modest $800k investment turned into a $15 million dollar windfall.

  • avatar
    kmoney

    The CEO one of the largest and successful automakers in the world makes less that the the CEOs of many of small-cap companies. That’s impressive and sad all at the same time — definitely says something about corporate culture over there.

  • avatar
    bikegoesbaa

    Poor guy. How is he supposed to get by on that paltry sum?

    So in case anybody was looking for proof that executive compensation is bananas in America, here it is.

  • avatar
    qfrog

    Toyota pays him a salary equivalent to no less than 276hp.

  • avatar
    shipping96

    I feel it’s still too much for an executive. But nowhere as egregious as the run-away compensation of US executives. The pie is only so big, being divided between investment in the company, workers, shareholders, and executives. The executives are stealing from othe other groups.

  • avatar
    johnny ro

    His name is Toyoda. I imagine he owns a piece of their $18 billion profits last year. Good for him.

  • avatar
    TonyJZX

    yep this^^^

    guy owns the company, they could pay him a dollar a year and he’s still have more money than all the other CEOs net worth combined.

    • 0 avatar
      redav

      Forcing CEOs to be paid in stock has merits. Their pay is thus driven by the success of the company rather than just cash. However, it also motivates them to manipulate the stock price rather than focus on real performance increases.

  • avatar
    Lou_BC

    His net worth is a billion dollars.

  • avatar
    nguyenvuminh

    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.

  • avatar
    Arthur Dailey

    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.

  • avatar
    Domestic Hearse

    You could buy a lot of Oxy from your in-office dealer Julie Hamp with that kinda scratch.

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