Mitsubishi Slashes Executive Pay, Revises 2019 Forecast

Mitsubishi, the automotive brand TTAC readers can’t get enough of, is going further into money saving mode amid the ongoing coronavirus pandemic.

The automaker announced late last week that it will revisit and revise its 2019 fiscal year financial forecast and rein in its spending, starting with the pay checks it sends to officers and directors.

“Despite the efforts to further reduce costs in order to achieve the forecasts announced in November under a harsh environment, the sharp deterioration in the demand environment greatly exceeded our expectations, and consolidated net sales and consolidated operating profit are expected to fall significantly below the forecasts,” the automaker said in a release.

On April 24th, Mitsubishi Motors’ board of directors approved the revisions, which dials down the dividend paid out to shareholders by half versus its earlier forecast. 10 yen per share, the year-end total now stands at.

Elsewhere, Mitsu rolled out a new pay strategy for fiscal year 2020. Executive and corporate officers will see their performance-based compensation scrapped, with base compensation cut 20 to 30 percent.

“Also, non-executive directors, including outside directors, have offered to voluntarily return part of their compensation and we intend to accept their offer,” the automaker stated. That returned pay amounts to 10 to 25 percent of those employees’ compensation.

Mitsu’s global production in calendar year 2019 saw the company’s first decrease in three years, with output falling 5.9 percent. North America was a bright spot in terms of sales; the U.S. saw its best volume since 2007, with sales rising 2.5 percent. Mitsubishi sales in Canada hit a new record.

[Image: Mitsubishi]