July 25, 2024
Industry News

Focus on Chairman’s Support at Toyota Shareholder Meeting

TOKYO – Toyota Motor Chairman Akio Toyoda is expected to be re-elected at the automaker’s annual general meeting on Tuesday, despite a drop in shareholder support. However, further decrease in support could lead to increased pressure for governance reforms.

This year’s AGM follows scandals involving certification test violations at Toyota and its group companies, including Daihatsu and Hino Motors.

Proxy advisory firms ISS and Glass Lewis have recommended against Toyoda’s re-election, citing governance and independence concerns. Despite the scandals, Toyoda’s approval rating fell to 85% last year from 96% in 2022.

The grandson of Toyota’s founder and longest-serving director, Toyoda is expected to have support from individual investors, suppliers, and group companies among its shareholders.

While the outcome of the vote will be announced on Tuesday, criticisms from proxy advisors have prompted discussions on governance reforms within the company.

Toyota’s shares have declined since the latest scandal but are still up for the year, reflecting its strong performance as the world’s top-selling car maker.

Toyoda’s leadership and the company’s financial success have been highlighted by analysts, emphasizing the need for effective governance moving forward.

(Reporting by Daniel Leussink and Maki Shiraki; Editing by Edwina Gibbs)

FAQ

Q: Will Akio Toyoda be re-elected as Toyota Motor Chairman?

A: It is highly likely that Toyoda will be re-elected despite some concerns raised by proxy advisory firms.

Conclusion

Despite challenges and scandals, Toyota remains a leading automaker under the leadership of Akio Toyoda. The company’s commitment to governance reforms and continued financial success are key factors in its sustained growth.

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