Nissan CEO resigns after receiving dubious wages

Nissan CEO resigns after admitting receiving ‘dubious’ payments but blames his ousted predecessor Carlos Ghosn for the scandal

• Board member told reporters in Yokohama, Japan that CEO Hiroto Saikawa will resign on the 16 September and a successor will be appointed next month
• CEO admitted his pay was inflated by illicitly adjusting the cash in date
• Blamed predecessor, Carlos Ghosn, for creating dubious payment systems

Nissan’s chief executive has handed in his resignation after admitting to receiving dubious income, and vowed to pass the leadership of the Japanese car maker on to a new generation.

Board member Yasushi Kimura told reporters at the firm’s headquarters in Yokohama that the board has approved the CEO, Hiroto Saikawa’s resignation, effective from September 16, and a successor will be appointed next month.

A search for the new chief executive is under way, he added.

Nissan Motors CEO Hiroto Saikawa attends a press conference at the company’s headquarters in Yokohama, Kanagawa prefecture in December last year. The CEO of the Japanese automaker plans to resign as the firm’s board meets to discuss an audit launched after its former chief, Carlos Ghosn, was arrested for financial misconduct

Calls for Mr Saikawa’s resignation, which arose after the arrest last year of his predecessor, Carlos Ghosn, on various financial misconduct allegations, have grown louder after Mr Saikawa acknowledged last week that he had received dubious payments.

The income was linked to the stock price of Nissan, and he said his pay was inflated by illicitly adjusting the date for cashing in.

The car maker’s board met to look into the allegations against Mr Saikawa, as well as other issues related to Ghosn’s allegations and corporate ethics at the company.

Mr Kimura said the income Mr Saikawa had received was confirmed as ‘not illegal.’

Ghosn, who is on bail and awaiting trial, says he is innocent.

Mr Saikawa has not been charged.

‘I have been trying to do what needs to be done so that I can pass the baton over as soon as possible,’ he told reporters earlier in the day, referring to his willingness to leave his job.

He did not attend the news conference.

Mr Saikawa has said he did not know about the improprieties, promised to return the money and blamed the system he said Ghosn had created at Nissan for the dubious payments.

Japanese media reports said Mr Saikawa had received tens of millions of yen (hundreds of thousands of pounds) in extra compensation.

Ghosn has been charged with falsifying documents on deferred compensation, which means he did not receive any of the money.

Nissan’s profits and sales have tumbled over the past year.

Investors are also worried about Nissan’s relationship with alliance partner Renault SA of France, which owns 43 per cent of Nissan.

Ghosn was sent in by Renault to lead Nissan two decades ago.

Source: Read Full Article