A pedal above his peers
However, Akio Toyoda has done more than just turn Toyota back into the black after the earthquakes in 2011; he’s provided impressive shareholder returns, taken care of his employees while taking home perhaps a less-than-fair piece of the pie for himself, and done more for the needy in the United States than you might be aware of.
Shareholders might stand in awe at Ford’s 2.4% dividend and amazing run since it bottomed out in 2009 (and I’d fully encourage that as I’ve previously highlighted its CEO Alan Mulally as an incredible CEO), but Toyota has done well by its shareholders, too. Shares in the automaker have roughly doubled since Toyoda took over in 2009, all while paying out a yield slightly above 1% and reducing the number of outstanding shares through share buybacks by 6.5% over the past decade. Remember, share buybacks don’t put money directly in shareholders’ pockets like dividends do, but they do make a stock appear cheaper on a P/E basis.
As an employer, unions in the U.S. may not like Toyota, but it nonetheless employs 31,000 people worldwide and added 1,300 jobs and invested $1.5 billion in the U.S. last year . That’s great news for auto workers looking for a job and for the U.S. that’s looking for any form of foreign investment it can get to drive growth. The benefits a typical Toyota employee will receive aren’t too shabby, either. Employees (depending on their location) receive 12 or more days of paid holiday each year with vacation accrual beginning immediately; may receive reimbursement for taking care of a dependent; and may be able to accommodate their work schedule around other activities through Toyota’s flex-time scheduling.
What’s unique about Akio Toyoda, though, is his take-home pay and his company’s overseas giving. Last year, Toyoda took home just $1.9 million in compensation, which may sound like a lot, but is miles below his peers. By comparison, Ford’s Alan Mulally and GM’s Dan Akerson took home $21 million and $11 million, respectively. Toyota is getting itself quite a bargain through Akio’s work ethic, and I truly believe Akio will not allow for a considerable bump in his compensation until Toyota’s market share picks up in the U.S. and in other parts of the world.
In the U.S., Toyota really demonstrated its giving nature earlier this year by sharing its manufacturing expertise with the Food Bank of New York City to improve the non-profit organizations ability to serve food to the needy. According to The New York Times, Toyota’s plans helped slash dinner waiting time by 80% to just 18 minutes from 90 minutes. Toyoda has shown that you don’t have to open your pocketbook to make a big difference in people’s lives – especially to those that are thousands of miles away!
