Toyota proxy advisers demand vote against chairman amid scandal
Akio Toyoda, chairman of Japanese carmaker Toyota Motor (NYSE:TM), this week faces unhappy shareholders as two proxy advisers demand a vote against keeping him on its board.
The vote, which is expected at the June 18 annual shareholders meeting, follows a public apology by Toyota for allegedly falsifying data about the performance of some cars as part of the certification process. The admission was a significant embarrassment for a carmaker that prides itself on product quality.
Institutional Shareholder Services, which advises investors, said in its proxy report that Toyoda “should be considered ultimately accountable.”
Another major shareholder, proxy advisory company Glass Lewis, recommended voting against the reappointment of Toyoda and Shigeru Hayakawa, a top executive.
“More specifically, we believe that Mr. Toyoda holds responsibility for failing to ensure that the Group maintained appropriate internal controls and for the failure to ensure appropriate governance measures were implemented at Group companies,” Glass Lewis said in its proxy report. “Moreover, given the widespread occurrence of issues throughout the Toyota Group, this further raises questions concerning the corporate culture which has developed under the leadership of Mr. Toyoda.”