Friday May 25, 2012

JAPAN NEWS AND DISCUSSION

Nissan chief says price hikes likely in Japan amid soaring material costs

Business Jun. 26, 2008 - 06:58AM JST ( 2 )

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rajakumarJun. 26, 2008 - 11:16AM JST

Skyrocketing crude oil leads to soaring material costs. Nissan car prices also will skyrocket like a nissan skyline.
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taikanJun. 27, 2008 - 04:04AM JST

Ghosn acknowledged Nissan’s executive pay was far higher than the compensation at Toyota, but he said that was because Toyota executives were almost all Japanese, while a quarter of those at Nissan were non-Japanese, requiring that their pay reflect “global standards.”

Aside from the fact that Toyota is just as much a "global" company as Nissan, as reflected in its world-wide sales figures, this statement essentially is an indictment of the executive pay structures of many of the so-called "global" companies. Nissan, which is far less successful than Toyota, pays its executives far more than Toyota pays its executives. Ghosn attributes this to the need for Nissan to satisfy the demands of non-Japanese corporate executives for higher pay. Instead, he should examine whether the higher pay given by Nissan and so many other companies to their executives, compared with the executive pay given by Toyota and other highly successful Japanese companies to their executives, has resulted in commensurately higher return on investment (or, if you prefer another measure of success, profits or share price). If not, then the shareholders are being cheated as a result of the board of directors' approval of excess executive compensation.