Criticism Abounds at Toyota’s Annual Meeting: Shareholders Slam Management and Chairman Toyoda’s Focus on Motorsport
Will Toyota heed the criticism and take action to address the ongoing issues it faces?
Shareholders expressed their dissatisfaction with Toyota’s management at the annual meeting, criticizing the company for ongoing safety testing and certification scandals, slow progress in electric vehicles, and accusing Chairman Akio Toyoda of prioritizing his motorsport ‘hobby’. Despite the backlash, Toyota’s management remained intact.
During Toyota’s annual meeting, shareholders did not hold back in their criticism of the company’s management. They expressed their frustration over the ongoing safety testing and certification scandals that have plagued the company. Additionally, they voiced their concerns about the slow progress in electric vehicles and accused Chairman Akio Toyoda of prioritizing his motorsport ‘hobby’ over his responsibilities.
Chairman Toyoda, in response to the accusations, did not directly address the accusation of treating motorsport as a personal hobby. Instead, he emphasized his role as overseeing every aspect of the company and supporting the decisions made by the executive members. He described himself as a ‘shadow cabinet’ to CEO Koji Sato and the younger generation of leaders who are running Toyota on a daily basis.
Proxy groups, Glass Lewis & Co and Institutional Shareholders Services, recommended against reappointing Toyoda due to his alleged responsibility for the wave of testing scandals within the Toyota Group companies. These scandals have raised questions about the company’s culture and safety standards. Toyota’s own review of its testing and certification processes is still ongoing, with potential implications for overseas markets.
In addition to the proxy groups, two of the largest US pension funds, the California Public Employees’ Retirement System and the Office of the New York City Comptroller, voted against Toyoda’s reappointment. The California Public Employees’ Retirement System voted against every executive nominated for reappointment, expressing concerns about safety and compliance issues. The lack of independent board oversight was also cited as a major governance issue.
Overall, shareholders at Toyota’s annual meeting expressed their dissatisfaction with the company’s management and Chairman Akio Toyoda’s focus on motorsport. The ongoing safety testing and certification scandals, slow progress in electric vehicles, and lack of independent board oversight have raised concerns among investors. The outcome of these criticisms and whether they will lead to real change within the company remains to be seen.
- Shareholders openly critique Toyota’s management and Chairman Akio Toyoda at the annual meeting
- Toyoda apologizes for the company’s problems
- Shareholders question Toyoda’s involvement in motorsport
- Proxy groups recommend against reappointing Toyoda
- US pension funds vote against Toyoda’s reappointment
- Critics fault Toyoda for insufficient board independence
Toyota’s management faced strong criticism from shareholders at the annual meeting, particularly targeting Chairman Akio Toyoda. The ongoing safety testing and certification scandals and slow progress in electric vehicles were major points of concern. Proxy groups and US pension funds voted against Toyoda’s reappointment, highlighting issues related to the company’s culture, governance, and board independence. It remains to be seen how Toyota will address these concerns and regain the trust of its shareholders and customers.