Investor support for Toyota Motor’s longtime chief Akio Toyota has fallen to its lowest level since he took the helm.
According to a filing published on Wednesday, 71.9 percent of Toyota’s shareholders voted for Mr. It reached the threshold required for re-election, but Mr. This is the lowest level of support for him since at least 2010, after his first full year as Toyota chief executive.
“In the context of corporate Japan, this is a surprising figure,” said Hirotaka Uchita, director of consulting firm Arthur D. Little partner, Mr. He said about Toyota’s renaming vote. Shareholders are aware that changes are being made to Toyota’s management and that Mr. They also want to see the level of influence Toyota has, he said: “It’s very clear.”
Traditionally in Japan, board members receive almost unanimous support from shareholders, and the company’s founding grandfather, Mr. Toyota has averaged more than 96 percent approval over the past decade. But that national trend has begun to change in recent years, with more investors using their votes to pressure companies to increase profits and corporate governance.
Ahead of Toyota’s shareholder meeting on Tuesday, a number of large investors have expressed interest in Mr. The New York Times reported that he plans to vote against Toyota’s reappointment. They questioned whether recent problems with mishandled vehicle tests were indicative of broader management problems at Toyota.
“Toyota’s shareholders have now sent a strong signal that better management is needed at the top of the company,” said Anders Scheldt, chief investment officer at Danish fund Akademikarpension. “We share the concerns expressed and expect the chairman to reflect the best interest of the company when deciding his next move.”
Arthur D. Little Mr. Uchida said this year’s low approval rating, Mr. There is little chance that Toyota will be big enough to step down. “But he’s taking a step back, at least from the public eye,” he said.
During Toyota’s annual meeting at its headquarters in Toyota City, southwest of Tokyo, Mr. Toyota defended his active role within the company. He said he would take responsibility for fixing problems at Toyota that led to violations of vehicle-certification tests.
Mr. Toyota’s comments reflect his enduring view of himself as a leader who, after facing many challenges during his 14 years at the top, continues to serve as a “rear guard” to protect the company from setbacks. Able to maintain forward momentum.
According to figures released Wednesday, 95.4 percent of shareholders voted in favor of Koji Sato, who succeeded Mr. He took over from Toyota. This was slightly lower than last year’s 96.8 percent.
Toyota said in a statement that it is strengthening its governance practices, clarifying the roles and expectations of its executives and redefining how it assesses directors’ independence.
“We feel the approval rates at this year’s shareholders’ meeting are honest feedback from institutional investors,” Toyota said. “Moving forward, we will continue to value dialogue with our stakeholders and take their feedback to heart and truly address it.”
