Toyota Posts Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives
Posted on June 2, 2014 Comments (3)
After posting record profits of $17.9 billion Toyota proposes to increase the pay and bonus for the top 21 executives to $14.9 million. That is not as you might expect just the increase in the bonus to the CEO. That is the entire pay and bonus for the top 21 executives. That places all 21 together below the top 50 CEO paydays in the USA.
Toyota’s net income for the year surged 89.5%. While the profits are partially due to good management at Toyota the decline in value of the yen also greatly aided results.
Toyota proposed 1.52 billion yen ($14.9 million) in combined compensation and bonuses to 21 directors, including President Akio Toyoda, in a notice to shareholders Tuesday. The Toyota City, Japan-based company paid 1.28 billion yen the previous fiscal year.
By comparison, total pay for union workers increased 8.2 percent [this was linked to an article as a source but the link was broken, so I removed it] on average from last fiscal year. The carmaker granted the union’s request for workers’ average bonus to rise to 2.44 million yen, the equivalent of 6.8 months of salary.
The company forecasts a 2% slip in net profit to $17.5 billion for 2015.
Toyota continues to generate cash flow extremely well and has over $20 billion in cash at the end of their 2014 FY. They are also increasing the dividend to stockholders and buying back more stock.
Less than a handful of USA CEOs that is took more from their companies treasuries than all 21 off the Toyota leaders take together led their company to greater earnings than Toyota (only a few companies earned more: Apple, Google, Exxon…). The thievery practiced by senior executives in the USA is immoral and incredibly disrespectful to the other workers at the company and the stockholders.
ExxonMobil did earn more and their CEO took $28.1 million. I think Chevron and Wells Fargo may have earned more than Toyota with a CEOs taking $20.2 and $19.3 million respectively.
Alan Mulally, Ford CEO, took $23.2 million while the company earned $7 billion. If you can ignore his massive and disrespectful taking what he doesn’t deserve he has been an acceptable CEO in other ways.
Another massively overpaid CEO that has done well if you can ignore his taking what he doesn’t deserve is Lawrence Culp at Danaher (who has long taken far more than he should). He is retiring, hopefully Danaher won’t allow such disrespectful behavior from someone that should be providing a much better example in the future – in many other ways Danaher has good management practices. Danaher earned $2.7 billion.
Leslie Moonves continues to take absurdly huge chunks of the corporate earnings at CBS. He took the 2nd most this year at $65.6 million, up 9 percent, while CBS earned $1.9 billion.
The 50th highest paid CEO in the USA in 2014 took $18.2 million for themselves.
There are a few honorable senior executives in the USA – such as Jim Sinegal at Costco. But sadly, now most CEOs of large companies in the USA act like kleptocrates and are a disgrace.
The abuses by senior executives have risen the level of deadly diseases. Companies like Toyota, Costco and Honda show how well companies led by good leaders that understand how to manage and that practice real respect for people can perform. The deadly disease of massively overpaid executives is greatly damaging most large companies and punishing their investors and employees.
Related: No Excessive Senior Executive Pay at Toyota (2007) – Honda’s 36 board members, included the CEO, were paid $13 million in 2008 – Japan Airlines CEO on CEO Pay – Taking What You Don’t Deserve, CEO Style – CEOs Plundering Corporate Coffers
For the first time median CEO pay for the S&P 500 has now exceed $10,000,000 annually in 2013.