Toyota chairman warns he could lose board spot amid falling investor assist

Toyota Motor Chairman Akio Toyoda mentioned he is probably not reelected as a director if shareholder assist for him continues to fall on the tempo it did this 12 months, in accordance with an interview printed on Monday.

Shareholder backing for Toyoda slid to 72% on the firm’s annual common assembly final month, following proxy advisers’ suggestions to vote towards his reelection. That compares to the assist of 85% in 2023.

Last month’s outcome marked the bottom assist ranking ever for a director in Toyota’s historical past, the 68-year-old grandson of the corporate’s founder mentioned in an interview with the automaker’s personal information outlet.

“If it continues at this tempo, I am unable to be a director subsequent 12 months,” Toyoda mentioned.

His assist ranking amongst international institutional buyers was notably weak at 34%. Ahead of the assembly, proxy advisers Institutional Shareholder Services and Glass Lewis each took situation with the way in which Toyota has handled certification testing violations.

Toyoda’s assist amongst home institutional buyers stood at round 55%, in contrast with 70% or extra within the earlier 12 months.

That indicated half of them have been asking him to step down due to his conduct over the previous 12 months, Toyoda mentioned in the course of the interview.

The weaker assist amongst institutional buyers contrasted sharply with a virtually 99% approval ranking amongst retail buyers.