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Takata president to take 30% pay cut over recalls
[TOKYO] Takata Corp President and Chief Executive Officer Shigehisa Takada will take a 30 per cent monthly pay cut over the next 12 months due to the air-bag maker's swelling recall costs, following an annual shareholders' meeting in which he signaled his willingness to eventually step down.
The pay cut, which will take effect from this month, is steeper than the 25 per cent reduction in the past 12 months, according to a company statement on its website. Other board directors will take a 20 per cent pay cut and the executives won't receive bonuses for the last fiscal year, the company said.
Takada was reappointed with the lowest approval rating among six directors at this week's shareholders meeting. Days after the 15th death involving ruptured Takata air bag inflators, Mr Takada signaled his intention to step down once the company finds a way to overcome its crisis, according to shareholders who attended the meeting. Mr Takada told shareholders he will take responsibility in containing recalls and finding a path to restructure the business, a spokeswoman said.
Takata formed a steering committee in February to develop a restructuring plan and last month hired Lazard Ltd. to pursue buyers. Honda Motor Co, Takata's largest customer, said Monday it was investigating the death of a 2005 City subcompact driver in Malaysia a day earlier, the third fatality in the country in three months that the automaker has said may have been caused by the faulty inflators.