Toyota Boosts Executives’ Bonuses on Record Earnings:
Toyota Motor Corp., the world’s biggest automaker by market value, will increase the total amount of executives’ bonuses by 33 percent for the year ended in March after the company posted record earnings. The automaker will pay a total of 970.5 million yen ($7.8 million) in bonuses to its top 32 executives, including President Katsuaki Watanabe, for the previous fiscal year, it said at its shareholders’ meeting.
Toyota’s 32 top executives received just over $12 million in salaries in the 12 months ended March. Lets see Toyota made something like $13,000,000,000 in profits. With the top 32 executives getting about $20,000,000 that is .15% of earnings. Even if there are some other benefits not included in the total that .15% figure for the top 32 executives doesn’t really compare to ludicrous pay of many CEOs in the USA. They are in a different paradigm than the others. I think their paradigm is much more effective (and the pay is the symptom of that system). I’ll take the executives of Toyota over the overpaid executives any time.
Related: More on Obscene CEO Pay – Excessive Executive Pay – addition to the seven deadly diseases – 12 Stocks for 10 Years Update – Jun 2007 (Toyota up 69%)
February 24th, 2008 at 2:35 pm
“Next year, [Toyota] expects to sell more than 10.4 million cars worldwide, double what it sold in 2000…”
July 8th, 2008 at 10:03 am
A good explanation of how Toyota avoids the trap of arbitrary numerical goals (Innovation at Toyota)…
November 4th, 2008 at 8:13 pm
I don’t think it is wise to pay huge sums to executives. If that means you lose some, fine, continue to manage your system well and things will still work out fine for you…