Toyota Motor Chairman Akio Toyoda is expected to maintain his position at the automaker’s annual general meeting despite concerns raised by proxy advisory firms ISS and Glass Lewis. The scandals involving certification test violations at Toyota, Daihatsu, and Hino Motors have led to a decrease in Toyoda’s approval rating, but he is likely to secure the majority vote needed for re-election.
While challenges in governance have been highlighted, Toyoda’s long-standing presence on the board and strong support from individual investors, suppliers, and Toyota group companies may secure his position. However, a further decline in shareholder support could prompt Toyota to accelerate efforts to unwind cross-shareholdings, especially in non-automotive companies.
The outcome of the vote will be announced on Tuesday, with attention on measures Toyota may take to address criticisms on governance issues. Despite recent scandals impacting Toyota’s stock, the automaker remains a top performer in the industry, securing its position as the world’s top-selling car maker for the fourth year in a row in 2023.
It is important for Toyota to address governance concerns and uphold effective compliance mechanisms under the board’s leadership, as highlighted by proxy advisory firms. Toyoda’s leadership and commitment to re-instilling a strong corporate culture will play a crucial role in navigating through the current challenges and ensuring the continued success of Toyota in the automotive industry.
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