Nissan CEO Vows to Repay Funds Gained Through Stock 'Scheme'

Steph Willems
by Steph Willems
nissan ceo vows to repay funds gained through stock 8216 scheme

Nissan CEO Hiroto Saikawa finds himself in hot water after an internal investigation revealed the head of the embattled automaker violated company procedure by taking part in a stock scheme that paid out more than it should have.

Saikawa, like other executives linked to the scheme, apologized and vowed to repay the excess compensation, claiming he assumed the scheme ⁠— orchestrated by ousted and jailed former alliance boss Carlos Ghosn ⁠— was above board.

“I thought the procedures were handled properly and I didn’t know (about the misconduct),” Saikawa told reporters in Tokyo. Kyodo News reports the CEO admitted other execs also received overpayments, but denied he crafted the stock appreciation rights scheme.

“It was one of the schemes created under the leadership of Ghosn,” he said.

Saikawa’s apology came after Reuters, citing an internal source, reported on the issue following a Wednesday meeting of Nissan’s audit committee. The SAR scheme reportedly netted the CEO tens of millions of yen (the equivalent of hundreds of thousands of dollars). Under the scheme, executives at Nissan earned bonuses tied to the automaker’s stock price ⁠— a measure apparently crafted to boost company morale.

Nissan’s board will meet next week to determine if Saikawa and other execs truly broke protocol and are thus deserving of disciplinary measures. It’s never a good look for a company when the boss has to have his wrists slapped.

Since former chairman Ghosn’s November arrest on charges of underreporting his income and diverting company funds, Nissan has attempted to improve both its image and corporate governance practices. This, of course, has taken a backseat to the falling sales and cratering profits afflicting the automaker.

[Image: Nissan]

Join the conversation
3 of 6 comments
  • Weltron Weltron on Sep 05, 2019

    “It was one of the schemes created under the leadership of Ghosn,” he said. Quite conveniently, of course it was Ghosn's fault /s

  • Ravenchris Ravenchris on Sep 05, 2019

    My reaction is to ignore the product, completely.

    • Noble713 Noble713 on Sep 06, 2019

      x2. I wasn't a big fan of Nissan outside of the R34 and R35 GT-Rs. Now? I wouldn't even consider adding one of those to my car collection, or anything else produced by the company. Ever. It's bad enough I'm propping up their conglomerate brethren by maintaining my Evo.

  • Pig_Iron You can buy a focus sedan right in the USA. It's called a maverick. 😒
  • Pig_Iron Brown bag a ploughman's lunch. 💼
  • Pig_Iron I thought IBOC was supposed to bring about a renaissance in terrestrial radio? Too bad the FCC went with a proprietary standard. I listen to AM every day because it offers superior geopolitical current affairs news and analysis, and because it offers non-English language programming also. EVs and less choice make driving drudgery. 😔
  • Irvingklaws Gas station coffee (which is usually pretty good these days) and a small bag of chips/nuts/pretzels to help stay alert. Sometimes bring a Gatorade because it doesn't seem to make me need to use the restroom as much as water or soda. Maybe stop McD's or BK for something to-go if I actually get hungry. Nothing fancy. I'll eat better when I get where I'm going 🙂
  • Legacygt There is nothing "trapezoidish" about that grill.