Suzuki Motor Corp. Chairman Osamu Suzuki said he will forgo 12 months' pay starting July as the Japanese automaker makes recompense for an ¥80 billion loss after a string of inspection cheating scandals that led to the recall of 2 million cars, the Nikkei Asian Review reported May 29.
The report said the chairman's son, President Toshihiro Suzuki, will also forfeit 50% of his pay for the next six months. Both executives, along with other board directors, will receive no bonuses for fiscal 2018.
Other executives, including vice chairman and directors, will have their compensation cut by between 10% and 40% for three to six months, the Nikkei said.
In addition, Hiroaki Matsuura, managing officer for production, will step down from his position on the company's board at the shareholder meeting scheduled for June, the report added.
The Japanese automaker will reportedly form a committee for administrative oversight in order to ensure a "firewall" between inspection and manufacturing sides. The company will also seek to set up quality control offices across its four domestic plants.
After it reported lower-than-expected results for fiscal 2018 impacted by the recall, Suzuki said it intends to improve exams for prospective vehicle auditors and install the latest equipment to enhance product quality, the Nikkei said.
As of May 28, US$1 was equivalent to ¥109.49.