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xBeastx
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Honda CEO Salary    (Score: 1, Normal) 08-04-2013 19:24
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I just read an article about the average pay of automotive CEOs. Most of them get paid millions of dollars a year...at least in the US they do.

Does anyone have accurate data on Takanobu Ito's salary? I just can't imagine someone in Japan sitting on a pile of money, living in mansions, and driving flashy cars.
CarPhreakD
Profile for CarPhreakD
Re: Honda CEO Salary    (Score: 1, Normal) 08-04-2013 21:11
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The Japanese CEOs get relatively modest salaries.

At the same time, are you going to tell Alan Mullaly or Sergio Marchionne that they don't deserve the salaries they get? Both of them have saved their respective companies, and Sergio saved TWO and runs FIVE.
nightflow
Profile for nightflow
Re: Honda CEO Salary    (Score: 1, Normal) 08-04-2013 21:24
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From 2012 article:

http://management.fortune.cnn.com/2012/07/02/sizing-up-automotive-ceo-pay/

Toyota (TM) CEO Akio Toyoda earned $1.7 million in a year that was one of the weakest in the Japanese automaker's history, as it recovered from disruption caused by earthquake and tsunami as well as lingering fallout from safety concerns in the U.S. Toyoda's pay was the same as the year before. Honda's (HMC) CEO Takanobu Ito actually took a 5% cut in pay to $1.54 million in 2011, a year in which Honda also suffered from earthquake-related disruptions and a nearly 7% slide in U.S. sales.

Japanese CEOs are usually paid far less in salary than Western counterparts, though their compensation often includes perks such as cars, houses and club memberships.
jshaw
Profile for jshaw
Re: Honda CEO Salary    (Score: 1, Normal) 08-04-2013 22:12
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Nissan alone pays Ghosn some 10+ million dollars a year. I don't know how much Renault pays him.
danielgr
Profile for danielgr
Re: Honda CEO Salary    (Score: 1, Normal) 08-05-2013 03:00
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jshaw wrote:
Nissan alone pays Ghosn some 10+ million dollars a year. I don't know how much Renault pays him.
Ever since Renault took control of Nissan, its CEO (Carlitos) has been the best paid executive in Japan (by far). Wonder if the likes of Uniclo have closed the gap in recent years, but doubt it. The day he fixes his salary for the next term is usually newsworthy in mainstream media.

PS: Knowing that no individual believes on his godly powers worth godly salaries is for sure one of the reasons why I rather work here than elsewhere, rather support Japanese companies than those from other countries.
danielgr
Profile for danielgr
Re: Honda CEO Salary    (Score: 1, Normal) 08-05-2013 03:10
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[deleted double post]

Last edited by danielgr on 08-05-2013 05:50
DrWhiner
Profile for DrWhiner
Re: Honda CEO Salary    (Score: 1, Normal) 08-10-2013 20:49
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I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!
owequitit
Profile for owequitit
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 01:48
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xBeastx wrote:
I just read an article about the average pay of automotive CEOs. Most of them get paid millions of dollars a year...at least in the US they do.

Does anyone have accurate data on Takanobu Ito's salary? I just can't imagine someone in Japan sitting on a pile of money, living in mansions, and driving flashy cars.



Most CEO salaries in the US are misunderstood.

In most cases, much of their pay comes from stock options that when cashed in, can be valued for millions. However, that also ties the CEO's pay to stock performance, which is mostly linked to company financial performance.

The US also tends to have higher average CEO salaries than most of the rest of the world, which can be argued as a plus or minus either way.

It is most likely that Ito's salary is much more modest.
owequitit
Profile for owequitit
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 01:58
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CarPhreakD wrote:
The Japanese CEOs get relatively modest salaries.

At the same time, are you going to tell Alan Mullaly or Sergio Marchionne that they don't deserve the salaries they get? Both of them have saved their respective companies, and Sergio saved TWO and runs FIVE.



But at what point is a long term capable CEO (or series of CEO's) worth more than the turnaround artist?

IMO, companies like Honda have a much longer string of impressive performance than companies like Ford.

While I understand that turnaround artists like Mullaly were absolutely critical to Ford's survival, what of the guys that ran it into the ground while still making record sums of money?

A good case in point that I like to use is Southwest Airlines. Their CEO makes a literal fraction of what most airline CEO's make worldwide (less than $500,000 a year), and yet they are the only airline on the entire planet that has been consistently profitable for more than 3 decades.

While the CEO is a key part of the operation, in some cases the US tends to over-emphasize the role the regular guys play in the process. There is just not a lot of reason in most cases that one person should be making up to 100 times more per year than the average employee.

And be fooled not, guys like Ghosn, Marchionne, et all don't run those companies without an army of support. They probably don't even make most typical CEO decisions, which are most likely delegated to trusted high level managers. There just aren't that many hours in a day.
xBeastx
Profile for xBeastx
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 08:05
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DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.
owequitit
Profile for owequitit
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 17:29
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xBeastx wrote:
DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.



You are incorrect on so many levels.

1) A great many US doctors make well in excess of $200K per year.

2) The CEO of a large company is directly responsible for the well being of tens of thousands of individuals and their livelihoods (i.e. their kids, families, etc.). It behooves companies to have an adequate compensation structure for top executives to ensure the well being of the company, which is directly in the best interests of ALL of the stakeholders. There is a VERY misinformed view in the world that the only people who benefit from a well run company are the CEO and the shareholders, when in fact, every employee and their families also benefit. This is why capitalism succeeds and communism does not. In the end, while the distribution of wealth is not equal, the AVERAGE distribution is greater than it would be.

3) Make no mistake about it. The reason the US has risen to the top, and remained there, is because our economy is built on a system that rewards individual performance. As much of a sin that is to blow holes like Danielgr, the cold hard fact is that it works better for everyone. People are individual creatures and while there is a subset of the population that would like to pretend they aren't, any system that allows people to be accountable for their individual performance (either through great success or failure) WILL work better than one that doesn't. History has proven it time and again, but some people simply choose to ignore it.
jshaw
Profile for jshaw
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 21:08
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xBeastx wrote:
DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.


Stop complaining about what you know nothing about.

At that level, very few people could manage the sheer political junk a large, old company will have. If you could, then speak up. I'm part of a 10 year old company with ~2000 employees, and we're quite successful (in terms of sales volume); I'm surprised we are still alive, based on what I know of the internal happenings. Good people cost money. Great leaders cost royal sums, given how few there are. Ito, Akerson, both might be perceived to be doing a poor job, yet very few people could do that job, right now. Fewer still willing to move from their existing jobs.
Inebriated Snake
Profile for Inebriated Snake
Re: Honda CEO Salary    (Score: 1, Normal) 08-11-2013 21:13
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owequitit wrote:
xBeastx wrote:
DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.



You are incorrect on so many levels.

1) A great many US doctors make well in excess of $200K per year.

2) The CEO of a large company is directly responsible for the well being of tens of thousands of individuals and their livelihoods (i.e. their kids, families, etc.). It behooves companies to have an adequate compensation structure for top executives to ensure the well being of the company, which is directly in the best interests of ALL of the stakeholders. There is a VERY misinformed view in the world that the only people who benefit from a well run company are the CEO and the shareholders, when in fact, every employee and their families also benefit. This is why capitalism succeeds and communism does not. In the end, while the distribution of wealth is not equal, the AVERAGE distribution is greater than it would be.

3) Make no mistake about it. The reason the US has risen to the top, and remained there, is because our economy is built on a system that rewards individual performance. As much of a sin that is to blow holes like Danielgr, the cold hard fact is that it works better for everyone. People are individual creatures and while there is a subset of the population that would like to pretend they aren't, any system that allows people to be accountable for their individual performance (either through great success or failure) WILL work better than one that doesn't. History has proven it time and again, but some people simply choose to ignore it.



For the most part I think your right, but I think the opinions of others are probably coming from perspectives of those working on the bottom end of the salary/hourly side. Where "performance" based reward structures are often used to actually stifle personal growth.

For example I worked in a company that did yearly performance reviews on a number system with pay raises based on the lower or higher number in a scale of 1~5. All things equal. All employees would have the potential to get a 5. Unfortunately the company dictates that no one can get a 5 (its aspirational), only one person per department can get a 3 or 4. Everyone gets a 1 or 2 regardless of performance. The upper management didn't deal with that BS. It is a tool where they can predict and minimize yearly increases of salary, no matter how well the company was doing.

Another example this stifling is in many commission based jobs where the per job rate is under paid and with a clear ceiling.

I think when people complain about CEO salaries its not so much about why they are paid so much, but why am I paid so little. The gulf between the two ends doesn't need to be so wide.
owequitit
Profile for owequitit
Re: Honda CEO Salary    (Score: 1, Normal) 08-12-2013 01:31
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Inebriated Snake wrote:
owequitit wrote:
xBeastx wrote:
DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.



You are incorrect on so many levels.

1) A great many US doctors make well in excess of $200K per year.

2) The CEO of a large company is directly responsible for the well being of tens of thousands of individuals and their livelihoods (i.e. their kids, families, etc.). It behooves companies to have an adequate compensation structure for top executives to ensure the well being of the company, which is directly in the best interests of ALL of the stakeholders. There is a VERY misinformed view in the world that the only people who benefit from a well run company are the CEO and the shareholders, when in fact, every employee and their families also benefit. This is why capitalism succeeds and communism does not. In the end, while the distribution of wealth is not equal, the AVERAGE distribution is greater than it would be.

3) Make no mistake about it. The reason the US has risen to the top, and remained there, is because our economy is built on a system that rewards individual performance. As much of a sin that is to blow holes like Danielgr, the cold hard fact is that it works better for everyone. People are individual creatures and while there is a subset of the population that would like to pretend they aren't, any system that allows people to be accountable for their individual performance (either through great success or failure) WILL work better than one that doesn't. History has proven it time and again, but some people simply choose to ignore it.



For the most part I think your right, but I think the opinions of others are probably coming from perspectives of those working on the bottom end of the salary/hourly side. Where "performance" based reward structures are often used to actually stifle personal growth.

For example I worked in a company that did yearly performance reviews on a number system with pay raises based on the lower or higher number in a scale of 1~5. All things equal. All employees would have the potential to get a 5. Unfortunately the company dictates that no one can get a 5 (its aspirational), only one person per department can get a 3 or 4. Everyone gets a 1 or 2 regardless of performance. The upper management didn't deal with that BS. It is a tool where they can predict and minimize yearly increases of salary, no matter how well the company was doing.

Another example this stifling is in many commission based jobs where the per job rate is under paid and with a clear ceiling.

I think when people complain about CEO salaries its not so much about why they are paid so much, but why am I paid so little. The gulf between the two ends doesn't need to be so wide.



I do not disagree at all. In fact, I agree completely. However, there is a lot of gray area between the CEO making 100x the average employee rate, and the CEO making 2x the average employee rate.

I have also worked under such systems, but rather than assume the system was against me, I made choices that put me on a better path. Again, the whole key to personal growth or potential is that the individual can CHOOSE to be better, or they can not. While it may not be reasonable to pay a CEO 100x the going rate, it is probably also not reasonable to pay a pittance and expect top notch talent either.

Most people take the stance they do against free enterprise because they choose not to learn about it, and rather complain that it is unfair. Nobody at the top got there or stays there because they were special. CEO's especially (and even more so entrepreneurs work harder than just about everybody to get where they are).

xBeastx
Profile for xBeastx
Re: Honda CEO Salary    (Score: 1, Normal) 08-12-2013 07:49
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jshaw wrote:
xBeastx wrote:
DrWhiner wrote:
I wonder if there's any proof of an association btw the CEO's performance and compensation.

As Mullaly and Marchionne might take credit of avoiding the collapse of their respective companies, how long should they be continually rewarded for such act? This is 2013 now, not 2009 anymore!


I don't really care about this, but I think it's unreasonable to pay anyone $1 million + simply because they don't need it. In the US, a $200,000 salary would be on the level of doctor, and that's more than enough even for them. The extra money each year could be either split among the other employees or used to make a better Si.


Stop complaining about what you know nothing about.

At that level, very few people could manage the sheer political junk a large, old company will have. If you could, then speak up. I'm part of a 10 year old company with ~2000 employees, and we're quite successful (in terms of sales volume); I'm surprised we are still alive, based on what I know of the internal happenings. Good people cost money. Great leaders cost royal sums, given how few there are. Ito, Akerson, both might be perceived to be doing a poor job, yet very few people could do that job, right now. Fewer still willing to move from their existing jobs.


Yes, I fully understand the position and responsibility that CEOs have. What I'm saying is that personally they don't need an excess of compensation for it unless they really want it. Who says that just because CEO = must have planes and mansions. From my point of view, I would be perfectly happy with my ability to manage a company and not receive excessive compensation beyond that which is required for living and that to support my hobbies/interests.
 
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