Toyota chairman’s support from shareholders slides amid governance concerns

TOKYO (Reuters) – Toyota (NYSE:) Chairman Akio Toyoda’s level of shareholder support dropped markedly at the automaker’s annual general meeting this week, hurt by certification test scandals and other governance concerns.

Toyoda, the grandson of the company’s founder, was re-appointed despite two leading proxy advisers having recommended against his re-election but support for him fell to 72%, down from 85% last year and 96% in 2022.

Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis had both taken issue with the way the company has dealt with the testing violations, including at compact car maker Daihatsu.

Some major foreign investors such as U.S. public pension CalPERS and Canadian pension investor CPP Investments opposed Toyoda’s re-election.