Toyota Motor Chairman Akio Toyoda has expressed concerns about his future as a director, citing dwindling shareholder support.
Toyoda in an interview noted that his reelection is uncertain if support continues to decline at its current pace.
Shareholder backing for Toyoda fell to 72% at the company’s annual general meeting last month, down from 85% in 2023. This marked the lowest support rating ever for a director in Toyota’s history.
“If it continues at this pace, I can’t be a director next year,” Toyoda said.
Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis had recommended voting against Toyoda’s reelection, citing issues with Toyota’s handling of certification testing violations.
Foreign institutional investors showed particularly weak support at 34%, while domestic institutional investors stood at around 55%, down from 70% or more in the previous year.
Toyoda acknowledged that half of domestic institutional investors were asking him to step down due to his behavior over the past year. In contrast, retail investors showed nearly 99% approval.
Boluwatife Enome
Source : Reuters
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