FoMoCo chief Alan Mulally makes more than Toyota’s Akio Toyoda, Nissan’s Carlos Ghosn, and Honda’s Takanobu Ito – combined. The three Japanese heads earned 100 million yen ($1.1 million), 891 million yen, and 115 million yen, respectively. Mulally earned $17.9 million in 2009. Bear in mind that FoMoCo’s salaries are not subject to the same oversight that GM and Chrysler’s are because ford received no bailout.
New Japanese rules require public companies to disclose the pay of those individuals who earn more than 100 million yen per year. Toyota named four such individuals; Toyoda was not on that list.
One expert worries that Japan is not being competitive enough in compensating its execs.
“Because of globalization, competition is intensifying, and there is a greater importance placed on strong and decisive management,” Katsuyuki Kubo, an associate professor of economics at Waseda University in Tokyo who specializes in compensation and corporate governance. “Without the pay incentive, Japan could lose out on competitiveness.”
– By: Stephen Calogera