See More on Facebook

Business

Nissan board pushes out Saikawa after disclosure of improper compensation

The embattled company is facing major structural changes on the back of two scandals.


Written by

Updated: September 11, 2019

Nissan Motor Co. announced Monday that President and Chief Executive Officer Hiroto Saikawa will resign, effective Sept. 16. The company’s board requested his resignation in the wake of a revelation that he had improperly received compensation, and he accepted the request.

The automaker aims to choose a successor by the end of October. Meanwhile, Chief Operating Officer Yasuhiro Yamauchi will serve as acting CEO until then.

“I have considered that my mission was to restore ties with Renault and improve earnings,” Saikawa said during a press conference Monday night at Nissan headquarters in Yokohama. “I have considered that if a successor system is established, I should start handing over my duties.”

The successor will be chosen by the company’s nomination committee, which consists of outside directors and is chaired by Masakazu Toyoda, who said the next president “must be well-versed in the global automobile industry and have a deep understanding of and great interest in Renault and Mitsubishi Motors,” referring to the alliance partners.

The committee is said to have narrowed the number of candidates, including those from French automaker Renault SA, to about 10. As for a specific candidate, Toyoda said: “It’s a clean slate. The person will be determined though future discussions.”

Saikawa, 65, was found to have received tens of millions of yen more than he should have through a stock-linked executive pay mechanism. Nissan concluded that although there was no illegality in the payment, the action violated company rules. Saikawa said he would return the money he received improperly.

Another reason for resigning, Saikawa said, was that this in-house investigation has been put to rest so the company can “take the next step.”

“It was a big milestone,” he said, but admitted: “I wanted to reorganize everything and pass it down to the next generation. I apologize for not finishing the job.”

Earlier, Nissan’s independent outside director and chairman of the board, Yasushi Kimura, spoke about removing Saikawa.

“The decision was unanimous at the board meeting,” the former JXTG Holdings Inc. chairman said. “It was reasonable to enforce governance. We deemed that we could gain the minimum level of acceptance.”

Saikawa became president and CEO in April 2017. He had conducted negotiations on management integration with Nissan’s largest shareholder, Renault.Speech



Enjoyed this story? Share it.


The Japan News
About the Author: The Japan News is published by The Yomiuri Shimbun, which boasts the largest circulation in the world.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Business

Ayodhya: Coming full circle

Ishan Joshi writes about the recent Ayodhya verdict. Nearly 27 years to the day when as a raw 20-year-old political reporter for The Statesman I reached Ayodhya to cover the run-up to and, as it happened, the aftermath of the demolition of a medieval mosque on 6 December 1992, my primary concern was to find out whether I would get eggs for breakfast. Information I had picked up on the drive down from the state capital Lucknow to Ayodhya was that the temple town, in keeping with its status as a holy city, did no “non-veg.” Such things were important to me, then.  Now, in an effort to prolong my late youth, as it were, oats/idli/low-fat yogurt and the like are my victuals of choice for breakfast. But that’s not all that’s changed. The Supreme Court’s verdict in the Ayodhya Case last week means a Ram Temple will soon be built


By Ishan Joshi
November 18, 2019

Business

Death of militant heads will stunt recruitment but not kill it

ISIS has a foothold in Southeast Asia. The deaths of Malaysian militant leaders Akel Zainal and Mohd Rafi Udin will reduce the intensity of recruitment for the Islamic State (IS) but not completely kill it, says a terrorism expert. Dr Ahmad El-Muhammady, a political science lecturer at the International Islamic University of Malaysia, said the recruitment of Malaysians into the terror group might continue undetected in some cases. “Their deaths will certainly have an impact among Malaysian IS fighters. While their deaths may reduce the intensity of recruitment, it will not completely kill it, ” he said. Commenting on the power vacuum among Malaysian IS fighters in Syria following the deaths of Akel and Mohd Rafi, Dr Ahmad said there was no longer a central Malaysian figure in Syria.


By The Star
November 15, 2019

Business

Excessive discounts worked against Nissan Motor profits

The company has been on the back foot since its former CEO was accused of mismanagement. Nissan Motor Co. has reported a massive 85 percent decline in operating profits — an area that indicates the strength or weakness of a company’s main business — in its midterm consolidated financial report for the half fiscal year ending in September. The pursuit of increased sales has harmed profitability, delaying the development of new Nissan models. That in turn has resulted in fewer sales — a vicious cycle the automaker is struggling to escape from. Nissan Motor’s deteriorating business performance may affect its three-way partnership with Renault SA, the French automaker that is its largest shareholder, and Mitsubishi Motors Corp. Failed strategy by Ghosn Nissan Corporate Vice President Stephen Ma, who will become chief financial officer on Dec. 1


By The Japan News
November 14, 2019

Business

Terminating GSOMIA may send ‘wrong’ message to adversaries

Wartime OPCON transfer is contingent upon conditions being met, says top US military official stationed in Korea. By terminating its bilateral intelligence-sharing agreement with Japan, South Korea risks sending the wrong message — that the trilateral alliance of South Korea, the US and Japan is weak — Gen. Robert Abrams, commander of the US-ROK Combined Forces Command, said Tuesday. Marking his first year in office, Abrams, who also commands United States Forces Korea and the United Nations Command, spoke on a series of current issues, including the ongoing defense cost-sharing negotiations and the alliance, during a joint press interview.


By The Korea Herald
November 14, 2019

Business

Uncertainty persists on US – China trade deal

This despite Trump’s comments that US and China close to trade deal. US President Donald Trump said on Tuesday (Nov 12) that the United States and China are close to a trade deal, but made clear that the prospect of tariffs was still on the table, with a warning that the US would raise tariffs on China if no trade deal was reached. His speech at the Economic Club of New York was closely watched by Wall Street but offered no new details on any signing of a much-touted “Phase One” preliminary trade deal with China. China, said President Trump, was dying to make a deal with their “supply chains cracking very badly” almost two years into the trade war. “We’re the ones deciding whether or not we want t


By The Straits Times
November 13, 2019

Business

US property loses allure for Chinese buyers

Economic factors contribute to falling demand.  Over the past 10 months, Bei Qin, a realtor in Silicon Valley, California, has not had any clients from China, a market that used to be her major source of business. “We had the best business in 2016 and 2017. Every day, we had inquiries from Chinese buyers and every week our WeChat account had more than 10 new subscribers,” said Qin, president of ACEQ Investment Group in Cupertino. “Now those days are gone.” After a decade of increasing investment by wealthy Chinese in residential property purchases in the United States-the biggest proportion of international buyers for seven consecutive y


By China Daily
November 12, 2019