For the fiscal year ended in March 2011, the top executives of Nissan Motor Co. were paid twice as much as Honda Motor Co. and Toyota Motor Corp. Fourteen executives and auditors received an average compensation, including bonuses, of 126 million yen ($1.6 million), Nissan disclosed in a notice released before its June 29 annual meeting. For nine executives excluding corporate auditors, average pay rose 32 percent to 186.4 million yen.
This announcement was made after the company revealed a net income of 31 billion yen ($389 million) for the first quarter ended March 31, 2011, as vehicle sales worldwide increased 16 percent to 1.2 million.
For the same period, Toyota’s profit dropped to 25 billion yen, the lowest in 18 months, while sales declined 12 percent. Analyst Satoru Takada at TIW Inc. stated during a telephone interview that the compensation of Nissan seems to have a short-term basis and reflects the company’s earnings in recent periods.
Based on the company’s financial statement, it is determining the compensation of each director by assessing their performance and passing through other procedures. Nissan spokesperson Mitsuru Yonekawa declined to explain further.
In addition to the pay, the company is planning to grant seven executives a total of 194 million yen worth of share appreciation rights.
On another note, Toyota has paid an average of about 41 million each to 38 corporate auditors and directors, for a total of 1.6 billion yen in salary. In addition, the company paid 27 executives bonuses of 340 million yen, boiling down to about 13 million yen for each executive.