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Honda Executives Face Pay Cut Over Fit Recalls

25 Octobre 2014 - Carbuzz

Honda Executives Face Pay Cut Over Fit Recalls

The automaker's CEO will be the hardest hit. Many people have wondered exactly what it is that makes the Japanese so adept at business, but this is a story which should explain quite a bit of it.

In the wake of the fifth recall of the Fit for quality issues, some of which are potentially fatal, the Honda board of directors has decided to slash salaries of several top executives. First on the chopping block is CEO Takannobu Ito, whose salary will be cut by a massive 20 percent.

An additional 10 top executive will have their pay cut by 10 percent as mounting fear over faulty Takata airbags has exposed serious errors in Honda's reporting of fatalities from the airbags. It has even been suggested that these failures to report the problem delayed the identifying of the problem. These sorts of problems are hardly unique to Honda, and 2014 has been a record year for recalls, but while other companies are perfectly happy to carry on as normal, it seems that Honda does not want to reward failure.

 

 

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