Two of the largest U.S. public pension systems have voted against the re-election of Toyota Motor Corp Chairman Akio Toyoda, shareholder voting records show, heightening the focus at the automaker’s annual general meeting on the end of the month.
The California Public Employees’ Retirement System (CalPERS) and the Office of the New York City Comptroller also voted in favor of a resolution asking Toyota to improve disclosure of its climate change lobbying activities, according to the publications. funds online.
The details of those votes come after two major proxy advisory firms raised questions about the automaker’s governance last week. One of them, Glass Lewis, recommended that shareholders vote against the re-election of Mr. Toyoda, believing that he was responsible for the absence of a sufficiently independent board of directors.
On Friday, Toyota did not immediately comment on the votes against Mr. Toyoda’s re-election.
In recent years, the world’s biggest automaker has been the target of climate advocates and green investors, who blame it for being too slow to launch battery-electric vehicles.
Toyota has previously said its board meets the governance standards set by the Tokyo Stock Exchange for independent oversight and will act with “objectivity, independence and the ability to conduct appropriate oversight.”
The company said Mr. Toyoda, grandson of the company’s founder and chairman, was nominated as a director nominee because he would advance Toyota’s transformation from manufacturing cars to company that also provides a range of “mobility” services and products.
Toyota’s board recommended shareholders vote against the climate lobbying disclosure proposal at its June 14 annual meeting. He said Toyota was committed to achieving carbon neutrality by 2050, but the company needed the flexibility to make quick adjustments, especially to how it discloses its information.
CalPERS, which declined to comment, is the largest public pension fund in the United States, with some $450 billion in assets under management. The New York Comptroller’s Office oversees a retirement system with $243 billion in assets under management.
CalPERS said it voted about 20 million shares on Toyota’s resolutions, less than 0.2% of shares outstanding, but it is an influential voice among global investors. The amount of the stake overseen by the office of the comptroller in New York was not immediately specified.
Toyota shares were up 1.8% at 1,978.5 yen at lunchtime Friday.
INDEPENDENCE OF THE BOARD OF DIRECTORS
New York Comptroller Brad Lander said Toyota’s board was not independent enough, in a statement explaining the voting of the funds it oversees.
“A board of directors that is truly independent of management and focused on maximizing long-term shareholder value can reinforce and affirm Toyota’s commitment to electric vehicles,” he said.
The New York Pension System has also urged Ford and General Motors to move quickly to electrification and disclose more information about their lobbying activities regarding vehicle standards.
In April, he was part of a group of investors who urged Tesla’s board of directors to ensure that Elon Musk – or a successor – is dedicated to the electric car business and to put in is implementing a longer-term plan to onboard directors unrelated to Mr. Musk.
2023-06-02 03:24:59
#California #York #pension #systems #vote #reelection #Toyota #chairman
