Unlike American automotive executives who travel with bodyguards, handlers and various other hangers-on, Japanese executives are considerably less pretentious, at least the Suzuki ones I saw this week.
During a tour of Suzuki's headquarters in Hamamatsu on Tuesday, we had a meeting with Takashi Nakayama, executive general manager for engineering and a member of the board of directors. Despite his high title, he was dressed in the same uniform as every other employee at the Hamamatsu plant (that's him on the left).
He entered the room unaccompanied and ate a box lunch along with everybody else. The room itself was unremarkable, as was the rest of the "executive floor" which was merely the third floor of a small building next to the factory.
Yesterday, Nakayama gave the presentation at Suzuki's press conference while the rest of the board stood at attention off to the side. Seems normal enough, but if it had been a GM or Chrysler press conference, the entire first row of seats would have been roped off for executives who would have been ushered in at the last moment after taking the time for various photo-ops.
Remember all this the next time you see an American auto executive whining about his government-adjusted compensation package. Trust me, they're doing better than most.
Ed Hellwig, Senior Editor, Inside Line
zoomzoomn says:
05:14 AM, 10/22/09
"...American auto executive whining about government-adjusted compensation package. Trust me, they're doing better than most."
While I do not like the notion of government intervention on pay scales in the private sector, you are dead on. The greater problem lies in the fact that CEO's and such executives in this country have become like our Senators that are now being watchdogs. There is too much greed and too little oversight of what they are giving themselves. Like our CEO's, our lawmakers are making sure to take care of themselves. Often to excess in lieu of their constituents (or, in CEO's place, employees) concern. So how does a D.C. lawmaker feel good about reigning in some CeO's pay when many of them don't show any better personal judgement themselves?
mrryte says:
07:07 AM, 10/22/09
What a stark contrast to the GM top brass. Keep in mind that the Japanese execs don't have the astronomical salary that the the Fortune 500 CEOs have:
http://www.businessweek.com/print/globalbiz/content/feb2009/gb20090210_949408.htm
Also, taken from here: http://blogs.insideline.com/straightline/2009/10/steven-rattner-why-i-fired-gm-ceo-rick-wagoner.html#comments
"But what about GM's culture?
"At GM's Renaissance Center headquarters, the top brass were sequestered on the uppermost floor, behind locked and guarded glass doors. Executives housed on that floor has elevator cards that allowed them to decend to their private garage without stopping at any of the intervening floors (no mixing with the drones)."
Hard to be loyal to the top brass and the rest of the company when they don't even know you exist. As for lawmakers trying to reign in CEO salaries; that's one of the biggest ironies of our time-holding others to high moral and ethical standards while the lawmakers themselves overlook them....
inlinesix says:
03:35 PM, 10/22/09
A person can also jump on a train in Shibuya or Shinagawa at "rush hour" and see all the suits getting off work. Some hold very important positions in large Tokyo companies yet they share the same packed (like sardines) train aisles with the working class. Great article.
jimveta says:
05:41 PM, 10/22/09
In the manufacturing sector Japan actually has the smallest gap between top executive and lowest level worker in the world.
When Japan Airline hit hard times and had to lay off workers last year, the CEO took a voluntary pay cut in his salary to just $90,000. That's less than what their pilots earn. These kinds of moves are actually customary for most workplaces in Japan and is quite good for solidarity in tough times.