Toyota 2015 Annual Report Download - page 110

In Japan, basic wages and other working conditions are negotiated annually. In addition, in accordance with
Japanese national custom, each employee is also paid a semi-annual bonus. Bonuses are negotiated at the time of
wage negotiations and are based on Toyota’s financial results, prospects and other factors. The average wage
increases per employee, excluding bonuses, in Japan have been approximately 2.5% per year for the past five
fiscal years.
In general, Toyota considers its labor relations with all of its workers to be good. However, Toyota is
currently a party to, and otherwise from time to time experiences, labor disputes in some of the countries in
which it operates. Toyota does not expect any disputes to which it is currently a party to materially affect
Toyota’s consolidated financial position.
Toyota’s average number of temporary employees on a consolidated basis was 86,843 during fiscal 2016.
6.E SHARE OWNERSHIP
For information on the number of shares of Toyota’s common stock held by each member of the board of
directors and audit & supervisory board member as of June 2016, see “— Directors and Senior Management.”
Each such member of the board of directors and audit & supervisory board member owns less than one percent of
the issued and outstanding shares of common stock of Toyota. The shares held by each member of the board of
directors and audit & supervisory board member do not include options that are exercisable for shares of
Toyota’s common stock. For a description of these options, see “— Stock Options” below.
None of Toyota’s shares of common stock entitles the holder to any preferential voting rights.
Stock Options
Toyota enacted stock option plans every year from 2008 until 2010. Toyota will not enact any such plan
after 2011. The plans for which stock options or stock acquisition rights are currently exercisable or will become
exercisable in the future were approved by Toyota’s shareholders in June of 2008, 2009 and 2010. Under the
2008 plan, Toyota issued stock acquisition rights to purchase 3,494,000 shares of common stock to its members
of the board of directors and 597 officers and employees, including directors, officers and employees of its
subsidiaries and one Toyota affiliated company. Under the 2009 plan, Toyota issued stock acquisition rights to
purchase 3,492,000 shares of common stock to its members of the board of directors and 615 officers and
employees, including directors, officers and employees of its subsidiaries and one Toyota affiliated company.
Under the 2010 plan, Toyota issued stock acquisition rights to purchase 3,600,000 shares of common stock to its
members of the board of directors and officers and employees, including directors, officers and employees of its
subsidiaries and one Toyota affiliated company.
Pursuant to the provisions of the 2008, 2009 and 2010 plans, stock acquisition rights may be exercised
during a six-year period that starts two years from the date of grant. The exercise price of each stock acquisition
right is 1.025 times the closing price of Toyota’s common stock on the Tokyo Stock Exchange on the date of
grant. The 2008, 2009 and 2010 plans provide that each member of the board of directors will be granted no
more than 400 and no less than 300 stock acquisition rights, and each eligible officer or employee will be granted
no more than 200 and no less than 20 stock acquisition rights. For each of the 2008, 2009 and 2010 plans,
100 shares will be issued or delivered upon the exercise of each stock acquisition right. The options are granted
as of early August of each year for each plan.
An option holder who retires while one’s options are still exercisable retains the right to exercise one’s
options until the expiration of the exercise period described above. However, an option holder’s right to purchase
common stock under each plan lapses automatically upon one’s death or upon taking position such as in the
management with a competitor.
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