112th Day Of Lockdown

Maharashtra26992414450710482 Tamil Nadu142798925672032 Delhi113740913123411 Gujarat42808298062056 Karnataka4158116249759 Uttar Pradesh3813024203955 Telangana3622123679365 West Bengal3144819213956 Andhra Pradesh3110316464365 Rajasthan2493618630518 Haryana2192916637308 Madhya Pradesh1820713208653 Assam178081141741 Bihar1742112364125 Odisha13737925591 Jammu and Kashmir108276095179 Kerala8323425732 Punjab81785586199 Chhatisgarh4265320219 Jharkhand3963235131 Uttarakhand3608285647 Goa2583154014 Tripura209314752 Manipur16269700 Puducherry146878518 Himachal Pradesh124392710 Nagaland8453400 Chandigarh5884238 Arunachal Pradesh3871452 Meghalaya316462 Mizoram2331510 Sikkim166870
Business Companies 27 Mar 2019 Nissan panel to prop ...

Nissan panel to propose bigger role for external directors in Ghosn scandal's wake

REUTERS
Published Mar 27, 2019, 9:27 am IST
Updated Mar 27, 2019, 9:30 am IST
The independent panel will announce the results of its three-month audit of Nissan’s governance-related procedures.
Ghosn is facing charges related to under-reporting his Nissan salary by around USD 82 million over nearly a decade. (Photo: PTI)
 Ghosn is facing charges related to under-reporting his Nissan salary by around USD 82 million over nearly a decade. (Photo: PTI)

Tokyo: A committee tasked with revamping corporate governance at Nissan Motor Co is expected to recommend on Wednesday a bigger role for external directors in overseeing the Japanese automaker following Carlos Ghosn’s arrest and ouster as chairman.

The independent panel will announce the results of its three-month audit of Nissan’s governance-related procedures, as the company seeks to draw a line under a near two-decade-long period during which Ghosn wielded outsized influence in his dual roles as its chairman and CEO for much of that time.

 

To decentralise the power structure at Japan’s second-largest automaker, the seven-member committee will likely also suggest that the company establish committees for board member nominations, auditing and for determining executive pay, according to a person familiar with the matter.

It may also recommend splitting the positions of company chairman, a role held by veteran top executives, and chairman of the board, who presides over board meetings, and that the latter position should be held by an external director.

The committee was not immediately reachable for comment, but has previously declined to comment on the matter. It will hold a briefing on Wednesday evening to release the recommendations.

 

Like executives at many Japanese companies, Ghosn held both chairmanship positions at Nissan, adding to his influence at the automaker.

Nissan has said that too much power had been concentrated on Ghosn, one of the most feted executives in the global auto industry who orchestrated Nissan’s financial recovery in the early 2000s and created the blueprint for the automaking alliance between Nissan and France’s Renault SA.

At the time of his arrest in Tokyo in November on financial misconduct allegations, Ghosn held the chairmanship at Nissan, Renault and Mitsubishi Motors Corp, which together form one of the world’s biggest automakers, while also serving as Renault CEO.

 

Ghosn is facing charges related to under-reporting his Nissan salary by around USD 82 million over nearly a decade, and for temporarily shifting personal financial losses onto Nissan’s books during the global financial crisis.

He denies the charges and has argued that his arrest and ouster from Nissan were orchestrated by executives at the company who were opposed to his plans for closer ties with Renault.

REBALANCED ALLIANCE

Nissan, Renault and Mitsubishi Motors are retooling their partnership to create a more equal footing between them. Bound by complex cross-shareholdings, the three companies aim to leverage their combined scale to reduce costs for development, procurement and production.

 

Earlier this month, the three automakers announced they would create an operating board headed by top executives from each of the companies which would oversee the partnership’s operations and governance - a role largely held by Ghosn alone in the past.

The newly appointed chairman of Renault, Jean-Dominique Senard, will serve as head of the alliance but - in a critical sign of the rebalancing - not as company chairman of Nissan, a position which could be left vacant for now, according to people with knowledge of the issue.

Nissan is considering asking ex-Toray Industries chief and Japan Inc heavyweight Sadayuki Sakakibara, who served on the reform committee, to take on the role of chairman of the board at the automaker.

 

...
Location: Japan, Tokyo-to, Tokyo




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT