Toyota Chairman Sees Decline in Investor Backing

Money | June 19, 2024, 5:33 a.m.

Investor support for Toyota Motor's long-time leader, Akio Toyoda, plummeted to the lowest level since he took charge as shareholders raised concerns about the extent of his control over the company. While 71.9 percent voted to renominate Toyoda as chairman of Toyota's board, this was the weakest level of support since 2010. Several major investors opposed his reappointment, citing worries about governance issues following mishandled vehicle tests. In Japan, board members typically receive near-unanimous backing, but this trend is shifting as investors push for improved profitability and corporate governance. In the case of Toyota, which has historically seen over 96 percent approval for Toyoda, this decline in support signals a changing landscape where shareholder activism is gaining prominence in corporate decision-making.