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Toyota Directors Get Pay Cut

To make up for losses that Toyota has suffered, directors have taken a pay reduction, a report says.
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NEW YORK (TheStreet) -- To make up for losses suffered by the world's No. 1 automaker, Toyota (TM) - Get Report directors have taken a pay cut, according to a report.

The pay cuts were made despite Toyota's returning to profitability in the last fiscal year because the automaker is still under heat for its massive global recalls.

According to the

Wall Street Journal

, Toyota's directors took an 11% reduction to their compensation last year, and no bonuses; returning a portion of their monthly compensation throughout the period as the company suffered its first net loss in 59 years in the previous fiscal year to March 2009. The directors will not be receiving bonuses this year, and are expected to continue returning parts of their monthy salaries.

The directors' compensation totaled 1.64 billion yen, or $18 million in the last fiscal year, the

Journal

says. About 1.43 billion yen worth of it went to 38 directors and 210 million yen went to seven auditors.

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The paper obtained this information from a document that came with an invitation to the company's June 24 shareholders meeting.

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-- Reported by Andrea Tse in New York

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