TOKYO: Two of the largest United States public pension systems have voted against the re-election of Toyota Motor chairman Akio Toyoda, shareholder voting records showed, sharpening the focus on the automaker’s annual meeting later this month.
According to online postings by the funds, the California Public Employees’ Retirement System (CalPERS) and the Office of the New York City Comptroller voted for a resolution urging Toyota to improve the disclosure of its lobbying on climate change.
According to Reuters, The information of the votes comes after two leading proxy advisory firms the previous week raised problems about governance at the automaker. One of them, Glass Lewis, recommended shareholders vote against re-electing Toyoda, citing what it said was his responsibility for the lack of a sufficiently independent board.
Toyota on Friday didn’t immediately comment on the votes against the re-election of Toyoda.
In recent years, the largest international automaker has been a target for climate activists and green investors who say it has been too slow to roll out battery-electric cars.
Toyota has said its board meets governance standards set by the Tokyo Stock Exchange for independent oversight, and it would act with “objectivity, independence and the ability to conduct appropriate supervision.”
It said Toyoda, the grandson of the industry founder and its chairman, had been nominated as a candidate for director because he pushed forward with Toyota’s transformation from auto manufacturing to a company that provides a range of “mobility” products and services.
Toyota’s company board has recommended that shareholders vote against the climate lobbying disclosure proposal at its annual meeting. It said Toyota company was committed to carbon neutrality by 2050, but the company needed the flexibility to make quick adjustments, including its disclosures.
CalPERS declined to comment and is the largest United States public pension fund, with some 450 billion dollars in assets under management. The New York comptroller’s office oversees the pension system with 243 billion dollars in assets under direction.
CalPERS said it voted about 20 million shares on the Toyota resolutions, less than 0.2 per cent of the stock on the problem, but it is an influential voice among world investors. The size of the stake overseen by the New York comptroller’s office wasn’t immediately clear.
Toyota shares were up 1.8 per cent at 1,978.5 yen by the lunch break on Friday.
