Hiroto Saikawa, the CEO of crisis-hit Japanese auto giant Nissan plans to resign days after admitting he received more pay than his entitlement. Local media made these reports on Monday, 9th September 2019.

 

The reports said it was not immediately clear when Saikawa would step down. This comes as the firm struggles with the aftermath of the arrest of former chief Carlos Ghosn. This happened on charges of financial misconduct.

 

Nissan said it had no immediate comment on the reports, which first emerged overnight in the Nikkei business daily. Nikkei said Saikawa has told several Nissan executives of his intent. However, there is no decision on a date for his resignation nor a successor.

 

The reported decision comes days after Saikawa acknowledged that a Nissan probe revealed he received more pay than his entitlement. Under this scheme, directors can receive a bonus if their company’s share price rises above a certain level in a set period.

 

Saikawa is suspected of improperly adding 47 million yen (₦160 million or $440,000) to his compensation by altering the terms of a bonus, according to reports.

 

 

Nissan has not confirmed the details of the payments, but Hiroto Saikawa apologised last week, while denying any wrongdoing. “I left the issue to someone else so I had thought it was dealt with in an appropriate manner,” he told reporters.

 

Nissan will hold a board meeting later today, where it will share details of the investigation that revealed the overpayments.

 

The carmaker currently undergoes an overhaul intended to strengthen governance after the Ghosn scandal.

 

In June, Nissan shareholders voted in favour of various measures. They included the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing.

 

They also approved the election of 11 directors as the firm restructures, including two Renault executives and Saikawa.

 

The company designed the reforms to put Nissan on a more stable footing after the arrest of Ghosn. This saw his sack from his leadership roles at the Japanese firm and others. He also awaits trial on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses.

 

Former Nissan CEO Ghosn, however, denies any wrongdoing. He also accuses Nissan executives opposed to his plans to further integrate the firm with France’s Renault of plotting against him.