One Billion Yen for Japan’s Highest Paid Executive
The numbers are in and it’ll soon be time to reveal who is the highest-paid Japanese executive. Hint: it’s the CEO of a Japanese automobile manufacturer – again…
For the fourth time in five years, Carlos Ghosn, Nissan CEO, is set to top the list of highest-paid Japanese executives. His salary, including bonuses, is expected to be 995 million yen (approximately $9.8 million. However, if you also add stock dividends into the equation, Ghosn’s total remuneration will exceed the one billion yen mark.
If that wasn’t enough, Ghosn is also set to receive an additional $3.1 million for his role at Renault; where he is also CEO.
But many people might question if his salary is justified? After all, Nissan posted the smallest profit increase of any Japanese automobile manufacturer apart from Daihatsu Motor Co.
So why the extremely generous pay-out? Well, according to Bloomberg, the Nissan CEO was reported as explaining his salary situation at a shareholder’s meeting in Japan:
“I understand the sensitivity of the issue,” Ghosn said. “Being in Japan should not be a handicap to attract talent. We need the best minds, we need the best talents.”
To put things into perspective, the President of Toyota Motor Corp., Akio Toyoda, earned 230 million yen over the same period – despite his company posting a profit five times larger than Nissan’s. Furthermore, Honda President Takanobu Ito, received a comparatively modest 150 million yen.
Despite the seemingly enormous numbers, Japanese executives are actually paid significantly less than their counterparts in the rest of the world. For example, the CEO of Ford Motor Co., Alan Mulally, eclipsed Ghosn’s earnings with his $23 million package and after just one year in charge, GM CEO Mary Barra is set to take home over $14 million.
After taking Nissan from near-bankruptcy to profitability in two years, maybe Ghosn can justify his salary after all.
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