How Much Does the CEO of Toyota Make?
Toyota is one of the oldest and largest automakers in the world. The company has been around for years and occupies one of the biggest market shares in the industry. The company has made significant strides under the leadership of Akio Toyoda. It is, therefore, safe to assume that Toyoda gets compensated well. Let’s look at how much the CEO of Toyota makes, as well as a review of his career and notable achievements.
What the Toyota CEO makes in a year
Toyota Motor Corporation was founded by Kiichiro Toyoda in 1937. According to Bloomberg, Toyoda earned ¥999 million last fiscal year, equivalent to $6.9 million. This was a 46% increase from ¥685 million he made in the year through March 2022. This translates to roughly $575,000 per month and $143,750 weekly.
This is a modest salary, considering Toyota made $238.8 billion in the year up to March 2022. It’s also a meager amount compared to other CEOs of rival companies. General Motors Chair and CEO Mary Barra is the highest-paid auto company CEO, with $28.9 million in total package earnings last year.
In 2022, Ford’s CEO Jim Farley earned $21 million, $2 million less than he did in 2021, but still an impressive figure. Stellantis CEO Carlos Tavares’s salary in 2022 was $24.8 million. $7.2 million was a recognition award for his contributions to the major merger. His yearly salary is $2.1 million, earning $2.5 million in pension and $20.2 million in incentives.
How Toyota CEO landed his role
Toyoda has sat on the executive board since 2000 and has been president and CEO of the global automaker since 2009. He is the grandson of the company’s founder, Kiichiro Toyoda. Toyoda was the first person from the founding family to hold a CEO role for 14 years. In 2005, he earned a promotion to executive vice president, which led to a CEO promotion in 2009.
Under his leadership, the company underwent a series of transformations to increase the brand’s global competitiveness, foster innovation, and streamline operations. Toyoda championed the development of new technologies, including electric vehicles, to position Toyota as a leader in sustainable mobility.
Akio Toyoda recently resigned as Toyota CEO
Toyoda stepped down as CEO earlier this year, with chief branding officer Koji Sato taking over as his replacement. Toyoda said his resignation is necessary for Toyota to have a new management of young leaders who will take the company to the next step and navigate challenges that may arise.
Following his resignation, the former CEO assumed the chairman role, with Takeshi Uchiyamada serving as a board member to make room for Toyoda. “I thought the best way to further Toyota’s transformation would be for me to become chairman in support of a new president, and this has led to today’s decision,” Toyoda said, adding, “Chairman Uchiyamada has long supported me in all imaginable ways.”
Toyoda spoke highly of his replacement, saying, “Sato is a man who has worked hard to master Toyota’s philosophy techniques and manners in the field of car manufacturing.” The chairman said Sato’s age also played a factor in him being chosen for the role.
“In order to promote change in an age when the right answers are not known, it is necessary for the top management to continue to be on the frontlines themselves. To do so, physical strength, energy and passion are essential,” Toyoda said, adding that youth is “a big attraction.” Sato graduated from Waseda University with a degree in mechanical engineering in 1992 and immediately joined Toyota, where he climbed the corporate ladder.