Takata cuts CEO's pay in wake of airbag crisis

Shigehisa Takada on Thursday apologized in his first news conference since the recall saga erupted.

Photo credit: Reuters

June 26, 2015 – 6:57 am ET

TOKYO (Reuters) — Takata Corp. CEO Shigehisa Takada earned less than 100 million yen ($ 810,373) in the business year ended in March, or less than half of the 206 million yen ($ 1.67 million) he took home in the previous year, a regulatory filing showed today.

Listed Japanese companies are required to disclose individual executive compensation only if it exceeds 100 million yen. The filing did not specify his compensation.

Takata, the Japanese auto safety parts maker at the center of a massive recall for potentially defective airbag inflators, had said it would slash executives’ salaries last year as the safety crisis escalated. Its four internal directors including Takada were paid no bonus, and made a total of 208 million yen.

Takada, the grandson of the company’s founder, on Thursday apologized in his first news conference since the recall saga erupted, and said Takata’s six directors, including one external, would again return part of their pay this year.

A Takata spokesman said Takada would have his salary cut by 25 percent for a year, while the other five would get 20 percent less.

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