Nissan chief executive Carlos Ghosn received over $10 million in total compensation in the fiscal year ended March 2014. Ghosn disclosed at the carmaker’s annual shareholders’ meeting that he received JPY995 million ($9.8 million) in salary and bonuses for the fiscal year ended March 31, 2014, representing a 0.7-percent rise.
If dividends are included, Ghosn’s total compensation was over JPY1 billion. Ghosn also received EUR2.3 million ($3.13 million at current exchange rates) in compensation in 2013 in his capacity as CEO of Nissan alliance partner Renault.
Ghosn received compensations four times higher than what Toyota President Akio Toyoda earned in the same period despite leading a carmaker which profit just around a fifth. Nissan saw its lowest profit surge among Japanese carmakers in 2013, save for Daihatsu.
Nissan was visibly affected by the increased incentive spending in the US and recall costs. Ghosn was the highest-paid executive in Japan in three of the four years since 2010, when the country’s financial regulator started requiring publicly traded companies to disclose compensations exceeding JPY100 million, according to Tokyo Shoko Research.
For the 2013 fiscal year, Toyoda and Honda Motor Co. President Takanobu Ito received JPY230 million and JPY150 million, respectively. The gap compensation between Ghosn and Toyoda, however, shrinks if dividends are taken into account with the Nissan executive receiving JPY93 million and the Toyota top honcho getting JPY757 million in the 2013 fiscal year.
Edwin Merner, president of Atlantis Investment Research Corp., remarked that Toyoda is a big shareholder in the carmaker, both directly and indirectly. While Ghosn is the best-paid executive among Japanese carmakers, his compensation is still far from the average compensation in 2013 for CEOs at comparable global automakers at $17.2 million. [source: Bloomberg]