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Nissan CEO Hiroto Saikawa said on Thursday that he had received higher compensation than he was entitled to, but denied knowing the matter.
Addressing local media, Mr Saikawa acknowledged that an internal investigation by Nissan had revealed that he and other leaders had received compensation in the form of stock-related actions. beyond the amount to which they were entitled. Mr. Saikawa received an excess compensation of about $ 440,000, according to NHK, the official Japanese broadcaster, which he allegedly attributed to an error on the part of the company.
"I apologize for all the concerns caused by this," he said, according to NHK, "and I think the different amount of the original registration has to be returned to the company. Is my intention. "
This recognition should allow comparisons with the fury aroused by the compensation paid to Carlos Ghosn, former boss of Nissan and former leader of the vast alliance between Nissan, Renault, France and Mitsubishi Motors, Japan. Japanese prosecutors accused Ghosn of failing to report his own compensation, which he denied.
The survey results are expected to be presented to Nissan's board on Monday, said Azusa Momose, a spokeswoman for Nissan. She declined to comment further.
Mr. Saikawa's disclosure throws an extra cloud over a carmaker shaken by the scandal and broader industry issues. Its profits have almost evaporated and sales have fallen. He's doing Licensing 12,500 employees worldwide and found itself at odds with its alliance partner, the French automaker Renault.
Nissan attributed its multitude of problems to Mr Ghosn, saying his financial problems and governance problems resulted from an excessive concentration of power in his hands.
The current trial of Ghosn and his former lieutenant, Greg Kelly, put Nissan in an unfavorable light. Kelly was arrested in Japan in November, along with Ghosn, who was suspected of conspiring to under-report Mr. Ghosn's compensation. Kelly denied the charges and the two former leaders are released on bail.
Mr. Kelly drew attention to possible problems with Mr. Saikawa's compensation in a lengthy interview published last June in the Japanese magazine Bungei Shunju, a literary and political journal.
During the interview, Mr. Kelly stated that Mr. Saikawa had approved Mr. Ghosn's compensation and asked Nissan for financial assistance for the purchase of a second home in Tokyo. In one case, Mr. Kelly stated that Mr. Saikawa had increased his income by unduly changing the execution date of the stock-based compensation.
Neither Mr. Saikawa nor Nissan responded directly to the charges.
However, an independent report on Mr. Ghosn's business issues acknowledged that Mr. Saikawa had signed documents relating to the former executive's compensation.
The company's profits fell by 94% between April and June compared to the same period last year. The company had previously announced that its net profit would be at its lowest in 2019, with a decline of nearly 47% at the end of the fiscal year in March. This announcement followed a nearly 45% drop in profits last year.
This decline is attributable to slower global demand for automobiles, particularly in Europe and North America, Nissan's largest market. But Nissan's problems have been exacerbated by a stagnant product line and the difficulty of attracting US consumers who prefer trucks and SUVs.
The problems are a legacy of Mr. Ghosn at the helm of the company, Saikawa said. But his own leaders were also examined. In recent months, shareholders, the press and former colleagues have begun to question Saikawa's track record and his ability to guide the company in its current problems.
Mr. Saikawa was re-elected to Nissan's board of directors in June with approximately 78% of the votes cast and against the objections of two proxy advisory firms. The two companies had asked shareholders to reject Mr. Saikawa's appointment, citing concerns about Nissan's performance and questions about his involvement in the alleged alleged wrongdoings of Mr. Ghosn.
At a press conference in July, Mr. Saikawa hinted that he could retire within a year, noting that he had asked a newly created nominating committee to search for his replacement.
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