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July 4, 2016

Takata Corporation reduces executive pay

Takata Corporation, embroiled in the largest recall of airbags worldwide, said it apologised "for the widespread concern and inconvenience caused to the driving public as a result of defects in its airbag products". It has booked special losses due to substantial provisions for product warranties, resulting in a net loss for the fiscal year ended 31 March, 2016 and, consequently, a decision not to declare a dividend. It has now also decided to cut executive pay.

Takata Corporation, embroiled in the largest recall of airbags worldwide, said it apologised "for the widespread concern and inconvenience caused to the driving public as a result of defects in its airbag products". It has booked special losses due to substantial provisions for product warranties, resulting in a net loss for the fiscal year ended 31 March, 2016 and, consequently, a decision not to declare a dividend. It has now also decided to cut executive pay.

For the period July 2016 to June 2017 chairman and CEO pay is cut 25% while other directors will lose 20%.

For the period July 2015 to June 2016 chairman and CEO pay was cut 30% while other directors lost 20%.

The suppliers said bonuses were not paid to directors during the fiscal year ended 31 March, 2015 while pay for executive officers was reduced by 10% from December 2015 and a summer bonus will not be paid this year.

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