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TOKYO – Nissan Motor President and CEO Hiroto Saikawa has decided to withdraw several days after admitting to receiving an unduly inflated compensation, Nikkei learned Sunday.
Saikawa has signaled its intention to several Nissan executives. The exact date of his resignation and replacement remains to be determined.
The Japanese automaker was about to conclude its internal investigation into similar allegations against former President Carlos Ghosn when it was revealed that Saikawa himself had compensation issues undue. Saikawa – who struggled to improve Nissan's performance – decided that it was time to pull out.
Nissan's nominating committee, composed mainly of outside directors and including Renault chairman, Jean-Dominique Senard, began searching for Saikawa's replacement in July, sources said.
Nissan will hold a board meeting on Monday to discuss Saiwaka's compensation issue, review the list of candidates for the position of Managing Director, and confirm the selection process.
Saikawa became President and Chief Executive Officer in April 2017, chaired by Ghosn. Since Ghosn's arrest in November 2018 and his ouster as president, Saikawa has sharply criticized his former boss for underestimating his compensation and using the builder's funds for private reasons.
However, many people inside and outside the company have questioned Saikawa in his role as CEO, one of the key leaders who has supported the Ghosn regime for years.
Saikawa received the weakest support among the 11 appointed directors at the annual shareholders' meeting in June, with an approval rate of only 78%. Some investors, including Nippon Life Insurance, voted against keeping Saikawa.
Criticism only intensified when it was revealed that Saikawa would have received compensation unduly received under the stock appreciation rights system.
The internal investigation into Ghosn misconduct and corporate governance ended last week. The results will be communicated to Monday's board meeting.
Counsel will also likely discuss the desirability of punishing Saikawa for his alleged undue compensation. The CEO denies his own involvement to inflate his salary. Several other leaders seem to be involved in the same pay problem, a sign of the lack of governance within the Japanese manufacturer.
In regards to the estate, Saikawa said in July that he hoped "the nominating committee would soon open the discussion and create a framework for next-generation management". Saikawa also added that he "had fulfilled one of the milestones of accountability" by inaugurating an independent nominating committee.
Meanwhile, Nissan's performance continues to worsen. The automaker announced in July a 99% decline in its operating profit from April to June over the previous year, which resulted in a reduction of 12,500 jobs from the previous year. March 2023, representing 10% of the group's employees.
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