The Toyota Motor Co has made a name for itself on the value, efficiency and reliability of its cars. The Toyota CEO is earning a similar reputation for his compensation. While the company generated the highest return last year among the world’s five biggest automakers by sales, President Akio Toyoda, 57, is the lowest-paid chief of the group, earning less than one-tenth as much as his best-compensated counterpart.
Toyoda has led a profit revival since taking control in June 2009, just after the global recession and the surging yen helped spur the automaker’s first annual loss in 59 years. Toyoda, the founder’s grandson, helped the company recover from Japan’s earthquake and tsunami and a recall of millions of cars.
Toyota has climbed 26% this year in thanks to new Toyota in Tacoma, after the carmaker retook the title of world’s biggest from General Motors Co. last year.
“Akio has been tested like no other CEO of Toyota in the last 30 years,” said Maryann Keller, principal at auto industry consulting firm Maryann Keller & Associates in Stamford, Connecticut. Compared to Toyoda, “the competition is overpaid.”
Toyoda’s 2012 pay was $1.9 million, a 35 % increase from the previous year, according to a filing with Japan’s Finance Ministry yesterday. The carmaker’s outlook for increasing profit prompted Toyota in March to approve the biggest bonus for workers since 2008.
For more information about Toyota vehicles or to take a look at one, contact Toyota of Tacoma.