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Report: Nissan to add external board seats, create compensation committee

Nissan Motor Co. Ltd. plans to add more external board members and establish a compensation committee in a bid to improve the company's governance, Reuters reported Dec. 13, citing an unnamed source.

The reported move follows the indictment of Nissan and former Chairman Carlos Ghosn over false disclosures in annual regulatory filings.

According to the report, the Japanese carmaker has not yet determined how many external board positions will be added. Nissan's external board includes Masakazu Toyoda, Keiko Ihara and retired Renault SA executive Jean-Baptiste Duzan, the newswire said.

Ghosn, who remains incarcerated in Japan, was ousted by Nissan as chairman and representative director Nov. 22 following his arrest Nov. 19. Mitsubishi Motors Corp. also dismissed Ghosn as chairman Nov. 26.

Meanwhile, Renault appointed COO Thierry Bollore as interim CEO while Ghosn is being investigated for alleged financial misconduct.

The three automakers have said they remain committed to their industrial alliance despite Ghosn's arrest and imprisonment.

Nissan did not immediately respond to a request for comment from S&P Global Market Intelligence.