trending Market Intelligence /marketintelligence/en/news-insights/trending/lN6Z1ojFwnjMhwHZuZLtnw2 content esgSubNav
In This List

Nissan CEO Hiroto Saikawa to resign, COO named interim boss

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Nissan CEO Hiroto Saikawa to resign, COO named interim boss

Nissan Motor Co. Ltd. President and CEO Hiroto Saikawa has resigned, concluding a yearlong investigation into alleged financial misconduct by former chairman Carlos Ghosn and other executives at the Japanese carmaker.

Nissan's board on Sept. 9 unanimously agreed to ask for Saikawa's resignation, Chair Yasushi Kimura said at a press conference. Saikawa will formally step down Sept. 16 and be replaced by current COO Yasuhiro Yamauchi, who will serve as interim CEO until a replacement is found.

The company said the nomination committee will start looking for a successor, and the board wants to appoint a new CEO by end of October. "The new CEO should have a deep understanding of the Renault-Nissan alliance," said director Masakazu Toyoda.

Nissan said its audit committee found that the Japanese carmaker incurred damages worth ¥35 billion as a result of the alleged misconduct by former chairman Carlos Ghosn and other executives. The audit committee's investigation included Saikawa's receipt of excess pay via a share appreciation rights, or SAR, program.

The company said the investigations concluded that Saikawa's excess gains under the SAR were not illegal, but he was found in breach of the company's governance best practices.

"We found that there is no illegality [with the SAR], but the exercise date of SAR was intentionally manipulated to increase the amount of gain and this was possible. As a governance issue, we take it seriously. CEO Saikawa expressed his intention to give back the money," Kimura said.

Nissan said it will abolish the SAR system from fiscal 2020.

The announcement comes a week after Saikawa admitted that he and other executives received more compensation than they should have under the SAR scheme. The company, however, stopped short of saying that Saikawa's exit is a result of the SAR controversy.

The executive was already under pressure for his role in what Nissan has described as Ghosn's abuses of power, as well as the carmaker's deteriorating business performance.

Responding to questions on the company's differing treatment of Ghosn and Saikawa, both of whom received unfair salary gains, Nissan noted that in Saikawa's case it was an "administrative error" and not an intentional manipulation.

Nissan blamed former representative director Greg Kelly, who was arrested in November 2018 over his involvement in the financial misconduct saga that also led to the arrest of Ghosn.

Ghosn has denied any wrongdoing and accused Nissan executives of "plot" and "conspiracy."

As of Sept. 6, US$1 was equivalent to ¥106.80.