Mitsubishi Execs Take Pay Cuts
Sep. 28, 2000
TOKYO (AP) _ Dozens of executives at Mitsubishi Motors Corp. are taking pay cuts and an executive in charge of product quality is being demoted in the wake of a damaging scandal over a cover-up of driver complaints.
President Katsuhiko Kawasoe, who already announced his resignation effective Nov. 1, will take a 40 percent pay cut for October. He remains on the board as executive adviser.
Mitsubishi Motors was shaken by a two-decade cover-up of auto defects that probably required massive recalls. The automaker is under police investigation.
New executives from DaimlerChrysler who will be joining the board were also approved at Thursday's board meeting. DaimlerChrysler is taking a 34 percent stake in Mitsubishi and has promised to help improve quality control.
Under changes approved at the meeting, Hirotoshi Suzuki gave up his post as general manager for quality to become executive adviser at Mitsubishi Motors as well as president at affiliate Mitsubishi Automotive Engineering Co.
Executive Vice President Fumikazu Yokogawa _ who is stepping down as vice president but remaining on the board as director _ will take a 35 percent pay cut. Yokogawa was in charge of business ethics.
Yuzo Murata, president of Mitsubishi Fuso Truck and Bus Co., will also take a 35-percent cut. About 50 other executives will have their pay reduced by 20 percent to 30 percent, while former executives still on the payroll will take 10 percent to 15 percent cuts.