Toyota Motor Chairman Receives Record-High Compensation of 1.622 Billion Yen

Toyota Motor Corporation's President Akio Toyoda received a record-breaking compensation of 1.622 billion yen (approximately 14 billion won, or $10.11 million USD) for the fiscal year 2023. This information was revealed in the securities report for fiscal year 2023, which was made public on the 25th. President Toyoda's compensation increased by about 1.6 times, from 999 million yen in fiscal year 2022 when he was president to 1.622 billion yen in fiscal year 2023. There are 7 directors whose compensation exceeds 100 million yen, which is subject to disclosure, with President Toyoda receiving the highest compensation, followed by Koji Sato, the current president, at 623 million yen. Toyota's operating profit for fiscal year 2023 reached 5.3529 trillion yen, marking the first time a Japanese company has exceeded 5 trillion yen.

Toyota Motor Corporation is a leading Japanese company with an overwhelming market share in the global automotive industry. Toyota is renowned worldwide for its exceptional quality and technological prowess, earning the affection of car enthusiasts globally and continuing to achieve consistent growth. President Akio Toyoda has played a pivotal role in Toyota's growth, and his leadership is recognized globally. President Toyoda's compensation can be interpreted as a reflection of his contributions to Toyota and the anticipation of future growth.

Meanwhile, executive compensation in Japan is relatively lower compared to other countries. Notably, Toyota Motor Corporation's President Akio Toyoda's compensation is significantly less than that of Tesla's CEO Elon Musk. This disparity is attributed to Japan's unique corporate culture and social atmosphere.

Traditionally, Japan has a tendency to restrain executive compensation, and excessive compensation can attract social criticism. This social atmosphere may lead Japanese companies to prioritize long-term stability over actively rewarding performance.

However, with the intensifying global competition, Japanese companies are facing the challenge of implementing performance-based compensation systems and actively recruiting innovative talent.