Record Profits for Toyota = More Pay for Directors, Executives
When an automotive giant pulls in record profits, it creates a number of possibilities for the excess cashflow. Is that money best used in creating new jobs or investing in infrastrcuture? Is it better used in bolstering the pay of the common laborer who works day in and day out to put together the cars and trucks that make the brand a global force? Are savings passed along to loyal customers or on-the-fence buyers in the hopes that long-lasting consumer relationships can be formed? Is it even best used toward philanthropic pursuits aimed at making the world a better place?
Hahahaha no, silly. You just give a ton of that money to high-ranking executives, of course!
After net income was up 19% in the last fiscal year, Toyota is opting to give 14 directors a 20% pay increase. That averages out to about $458,000 for each director. Additionally, bonuses for 12 executives will rise 45% to about $594,000 a piece.
To be fair, Toyota did also raise the base monthly salary of its unionized workers in Japan…by $34 a month. That’s about one-third less than what the labor union had been proposing.
Toyota estimates that its profits for the 2015FY (ending March 2016) will rise to 2.25 trillion yen ($18.1 billion USD). Maybe they’ll buy all the executives and directors gold boats!
News Source: Bloomberg