Nissan probe finds CEO Saikawa, other executives overpaid
Nissan Motor Co was embroiled in another scandal over executive pay on Thursday after Chief Executive Hiroto Saikawa admitted to being overpaid in violation of internal procedures under a scheme designed by ousted Chairman Carlos Ghosn, reports Trend referring to Reuters.
An internal investigation found that Saikawa and other executives had received improper compensation, a source with knowledge of the matter told Reuters, raising doubts about Saikawa’s pledge to improve governance in the wake of Ghosn’s arrest last year for alleged financial misconduct.
Saikawa apologized and vowed to return any improperly paid funds as he admitted to Japanese reporters earlier on Thursday that he had wrongly received stock-related compensation under “a scheme of the Ghosn era”.
“I am deeply sorry for causing concern,” Saikawa said, according to Jiji Press.
In other comments reported by Kyodo news, Saikawa denied any direct role in the execution of the rights scheme and said he thought “proper procedures” had been taken.
The improper payments, including tens of millions of yen Saikawa received through a stock appreciation rights (SAR) scheme, were disclosed on Wednesday at a meeting of Nissan’s audit committee, said the source who declined to be identified because the information is not public.
Disciplinary action regarding the issue would be discussed at an upcoming board meeting, the source added.
Nissan said in a statement that the findings from its probe including issues related to the share appreciation rights would be submitted to its board on Sept. 9.