Toyota Motor Corp. is planning a 19-percent jump in total pay for its directors after the carmaker posted record profits in the fiscal year ended March 2014. The proposed figure ballooned to JPY1.52 billion ($14.9 million) in combined compensation and bonuses to directors, including President Akio Toyoda, from JPY1.28 billion in the previous fiscal year.
The proposed increase in total pay comes as Toyota reached a deal in March to hike base wages in Japan by an average of JPY2,700 more in base pay per month, representing 1 percent of average salary in 2013 but less than the JPY4,000 hike that the Toyota Motor Workers’ Union had demanded.
Toyota also decided to increase the average employee bonus to JPY2.44 million. Toyota expects its net profit for the current fiscal year to drop 2 percent from the JPY1.82 -rillion profit logged last fiscal year.
Toyota, however, expects sales to surge in every major region except in Japan, where demand could drop no thanks to a newly implemented sales tax hike. Likewise, Toyota has proposed to increase its year-end dividend to JPY100 per share.
It is also repurchasing stock for the first time in five years. The carmaker said in March that it would buy back up to 60 million shares -- equivalent to a 2-percent stake -- for JPY360 billion.