Investor support for Toyota Motor Corp.'s longtime leader, Toyoda Akio, has fallen to its lowest level since he took the helm after shareholders questioned the extent of control he exercises over the company.
In a filing made public Wednesday, 71.9% of shareholders supported Toyoda's re-appointment as Toyota's chairman, meeting the threshold needed for reelection but marking the lowest approval rating since 2010, when Toyoda spent one full year as CEO.
Ahead of Toyota's shareholders meeting on Tuesday, The New York Times reported that several major investors plan to vote against Toyoda's reappointment. They questioned whether recent issues over the improper handling of vehicle testing point to broader governance issues within Toyota, including insufficient checks and balances on management.
Traditionally in Japan, directors have received near-unanimous support from shareholders, with Toyoda, whose grandfather founded the company, averaging more than 96% approval over the past decade. But this national trend has begun to change in recent years, with more investors using their voting power to pressure companies to improve profitability and corporate governance.
Speaking at Toyota's annual general meeting at its headquarters in the city of Toyota, southwest of Tokyo, Toyoda defended his active role within the company, saying he would take responsibility for addressing the internal issues that led to the vehicle approval test violations.
Toyoda's comments reflect his ongoing view of himself as a leader, having steered Toyota through numerous challenges during his nearly 14 years in charge and continuing to play the role of “rear guard” to protect the company from setbacks so others can keep moving forward.
Figures released on Wednesday showed 95.4% of shareholders voted in favor of Koji Sato, who took over as CEO from Toyoda last year, down slightly from 96.8% last year.
