Toyota chairman Akio Toyoda likely to be re-elected despite drop in shareholder support over governance concerns

From Investing.com: 2024-06-17 02:19:17

Toyota Motor Chairman Akio Toyoda will likely be re-elected at the upcoming annual general meeting despite a drop in shareholder support over governance concerns following testing scandals at Toyota, Daihatsu, and Hino Motors. Toyoda’s approval rating fell to 85% last year but he only needs a majority vote to be re-elected.

Potential Toyota actions to address governance criticisms may involve unwinding cross-shareholdings, including non-automotive companies like KDDI. ISS and Glass Lewis have recommended not re-electing Toyoda, citing concerns over governance, independence, and strategic shareholdings. The vote outcome will be announced on Tuesday.

Despite recent scandals, Toyota’s stock has performed well, losing 10% since the latest scandal but still up 17% for the year. Toyota remains the world’s top-selling car maker for the fourth year in a row, boasting record profits due to a weak yen and growing hybrid vehicle sales.

Toyoda’s leadership is praised for delivering growth and record profits at Toyota. The automaker’s success under his leadership has been a standout performance in the market, despite recent governance concerns and testing scandals.



Read more at Investing.com: At Toyota shareholder meeting, all eyes on level of support for chairman By Reuters