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Akio Toyoda, chairman of Japanese carmaker Toyota MotorNYSE:TM) faced disgruntled shareholders this week, with two proxy advisers demanding a vote against keeping him on the board.
The vote is expected to take place at the annual general meeting on June 18, and was previously disclosed Toyota has apologized for allegedly falsifying certain car performance data during the certification process. The admission is a major embarrassment for an automaker that prides itself on the quality of its products.
Institutional Shareholder Services, which advises investors, said in its proxy report that Toyoda “should be considered ultimately responsible.”
Proxy advisory firm Glass Lewis, another major shareholder, recommended voting against the re-election of Akio Toyoda and senior executive Shigeru Hayakawa.
“More specifically, we hold Mr. Toyota responsible for failing to ensure that the group maintained appropriate internal controls and for failing to ensure that group companies implemented appropriate governance measures,” Glass-Lewis said in its proxy report. “Furthermore, given the widespread problems across the Toyota Group, it raises further questions about the corporate culture that has developed under Mr. Toyoda’s leadership.”
