Crisis-hit Japanese automaker Nissan is losing another leader less than a year after the arrest of its former chairman Carlos Ghosn on charges of financial conduct.
According to reports, company CEO Hiroto Saikawa is stepping down after an investigation revealed that he received more compensation as part of a bonus scheme. Under the scheme, company directors can receive a bonus if their share price rises above a certain level.
An internal probe revealed that to boost his compensation, the CEO falsified documents and altered the terms of the bonus. The embattled executive last week apologized while denying any wrongdoing. He said he left the issue to someone else who he thought dealt with it in an appropriate manner.
Board chairman Yasushi Kimura told reporters that Saikawa is leaving Nissan on September 16. While looking for a replacement, chief operating officer Yasuhiro Yamauchi will take on the role temporarily, the company said.
Since the dramatic downfall of Ghosn, Nissan has struggled to find its footing. The company is also facing questions over its corporate governance and an uncertain future. Back in June, company shareholders agreed to form three new oversight committees which will lead the way in the appointment of senior officials.
The company also established an 11-member board with 6 of them outside directors as part of its management revamp. Among them are two Renault executives as well as Saikawa.
The Downfall of Carlos Ghosn
Carlos Ghosn is awaiting trial on charges of underreporting his compensation and using company assets for personal use. It’s interesting to note it was Saikawa who alleged Ghosn of the wrongdoing.
Saikawa “expressed disappointment, indignation, and despair at Ghosn’s conduct, which included using company funds for personal investments and misusing corporate assets. He also said, “this is an act that cannot be tolerated by the company. It is sufficient grounds for his dismissal”.
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