July 18, 2013
It has been brought to light that the annual income of the president of Toyota Motor Corporation increased by 1.6 times in fiscal 2012 from a year earlier while those of its employees remained unchanged.
Japan’s auto giants have been making huge profits because of the brisk sales in the domestic market helped by tax credits for purchasing eco-friendly cars and the yen’s continuing depreciation led by the Abe government’s monetary relaxation policy. The recurring profit of Toyota increased 37-fold from the previous year, and that of Honda nearly fivefold.
The 2012 financial report shows that the remuneration of Toyota’s president went up from 136 million yen in the previous year to 184 million yen, while its regular workers’ annual income edged up by 1.5% to about 7.5 million yen. As for Honda, the president’s income rose by 18% while its employees’ incomes declined.
The two car makers also raised their annual dividend payouts. Toyota boosted it by 1.8 times from a year earlier, and Honda did so by about 1.3 times. The annual income of Toyota’s president, including dividends, jumped from 365 million yen to about 600 million yen as he owns some 4.6 million shares in his company. The amount of increase in the president’s annual compensation is more than 2,000 times as much as that of a typical employee.
This indicates that the administration’s economic policy dubbed “Abenomics” is completely useless in boosting ordinary household incomes.
Japan’s auto giants have been making huge profits because of the brisk sales in the domestic market helped by tax credits for purchasing eco-friendly cars and the yen’s continuing depreciation led by the Abe government’s monetary relaxation policy. The recurring profit of Toyota increased 37-fold from the previous year, and that of Honda nearly fivefold.
The 2012 financial report shows that the remuneration of Toyota’s president went up from 136 million yen in the previous year to 184 million yen, while its regular workers’ annual income edged up by 1.5% to about 7.5 million yen. As for Honda, the president’s income rose by 18% while its employees’ incomes declined.
The two car makers also raised their annual dividend payouts. Toyota boosted it by 1.8 times from a year earlier, and Honda did so by about 1.3 times. The annual income of Toyota’s president, including dividends, jumped from 365 million yen to about 600 million yen as he owns some 4.6 million shares in his company. The amount of increase in the president’s annual compensation is more than 2,000 times as much as that of a typical employee.
This indicates that the administration’s economic policy dubbed “Abenomics” is completely useless in boosting ordinary household incomes.
