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Toyota Motor Chairman Receives Record High Compensation of 1.622 Billion Yen
- Writing language: Korean
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Base country: Japan
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Summarized by durumis AI
- Akio Toyoda's compensation for the fiscal year 2023 was 1.622 billion yen, a record high and an increase of about 1.6 times compared to the previous year.
- Toyota Motor Corporation achieved an operating profit of over 5 trillion yen in the fiscal year 2023, becoming the first Japanese company to enter the 5 trillion yen operating profit era. Toyoda's compensation is seen as reflecting expectations for the company's growth.
- Japan traditionally has a tendency to suppress executive compensation, but in the face of intensifying global competition, it is becoming increasingly important to introduce performance-based compensation systems and secure innovative talent.
Toyota Motor Corporation's Chairman Akio Toyoda received 1.622 billion yen (approximately 14 billion won, $10.11 million) in executive compensation for the fiscal year 2023, the highest amount ever for any executive. This was confirmed in the securities report for the fiscal year 2023, which was released on the 25th. Chairman Toyoda's executive compensation increased by approximately 1.6 times, from 999 million yen in the fiscal year 2022 when he served as president to 1.622 billion yen in the fiscal year 2023. There are seven directors who are subject to disclosure requirements of 100 million yen or more, with Chairman Toyoda receiving the most, followed by President Koji Sato at 623 million yen. Toyota's operating profit for the fiscal year 2023 was 5.3529 trillion yen, marking the first time a Japanese company has surpassed 5 trillion yen.
Toyota Motor Corporation is a leading Japanese company, boasting an overwhelming market share in the global automotive market. Toyota Motor Corporation is loved by car enthusiasts around the world for its excellent quality and technological prowess, and continues to achieve sustained growth. Chairman Akio Toyoda has made a major contribution to Toyota Motor Corporation's growth, and his leadership is recognized globally. Chairman Toyoda's executive compensation is interpreted as reflecting his contributions to Toyota Motor Corporation and expectations for future growth.
On the other hand, executive compensation for Japanese corporate executives is relatively low compared to other countries. In particular, Akio Toyoda, Chairman of Toyota Motor Corporation, has significantly lower compensation than Elon Musk, CEO of Tesla. This is analyzed to be influenced by Japanese corporate culture and social atmosphere.
Japan traditionally has a tendency to suppress executive compensation, and excessive compensation can be subject to social criticism. This social atmosphere can lead Japanese companies to be less proactive in rewarding performance and to pursue long-term stability.
However, in an environment of intensifying global competition, Japanese companies are facing the challenge of introducing performance-based compensation systems and actively recruiting innovative talent.
