Toyota chair’s pay raised to $10 million despite safety probe

Toyota Chairman Akio Toyoda was paid ¥1.62 billion ($10.2 million) during the 2023 fiscal year, up 62% from a year earlier, even after he received record low shareholder support amid a government probe into the carmaker’s vehicle certification.

The pay package included his salary of ¥289 million and bonus payments worth ¥324 million and around ¥1 billion in the form of shares, according to an annual securities report filed Tuesday. The total, up from the previous year’s ¥999 million pay, made him the highest paid Japanese executive for a third straight year.

But it’s still less than what the heads of other global automakers are getting. Stellantis’ Carlos Tavares made $39.5 million in 2023, trailed by General Motors boss Mary Barra whose pay package last year totaled $27.8 million.

The car safety probe has drawn the ire of foreign investors and sowed doubt about the company’s leadership. At Toyota’s annual meeting earlier this month, 71.93% of shareholders — the lowest on record since at least 2010 — voted for Toyoda’s reappointment to the board.

Operationally, Toyota has been doing well. The company’s operating income during the 2023 fiscal year soared to a record ¥5.4 trillion, making it the first Japanese company to ever reach ¥5 trillion. It also made and sold more than 11 million passenger cars, beating Volkswagen to become the world’s No. 1 vehicle manufacturer for a fourth straight year.

Toyota CEO Koji Sato has received ¥623 million since he was appointed to the board in June 2023, the same report showed.

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