Toyota Plans 19% Boost in Director Pay After Record ProfitCraig Trudell
Toyota Motor Corp., the world’s biggest carmaker, plans to boost pay to directors by 19 percent for the last fiscal year after the company earned record profit.
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 today. The Toyota City, Japan-based company paid 1.28 billion yen the previous fiscal year.
After recording an unprecedented 1.82 trillion yen profit last fiscal year, Toyota forecast this month that net income will slip 2.4 percent in the year ending March 31. The company predicts deliveries to increase in every major region except Japan, where the nation’s first sales-tax increase in 17 years is expected to temper demand.
Toyota has proposed raising its year-end dividend to 100 yen a share, or 165 yen for the full year. The company also is buying back stock for the first time in five years. In March, it said it would repurchase as many as 60 million shares, equivalent to a 1.9 percent stake, for 360 billion yen.
By comparison, total pay for union workers increased 8.2 percent on average from last fiscal year.