By on September 5, 2019

Image: Nissan

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]

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6 Comments on “Nissan CEO Vows to Repay Funds Gained Through Stock ‘Scheme’...”

  • avatar

    So Saikawa got Ghosn pushed out of the company for shady dealings, but he’s just as shady? Shocked!


    /do honorable thing

  • avatar
    Land Ark

    Another article I read seemed to indicate that Saikawa lead the whole stock incentive thing. No it makes me wonder if he was going based on bad information from Ghosn.

    I’m not buying Saikawa’s story. If anything he is saying is true, he 100% knew it was wrong when they went after Ghosn for the same thing. He did nothing until now and that is as much of an admission as I need.

    I love Japan, but if Saikawa doesn’t get tossed in jail like Ghosn was, I will be very disappointed with the Japanese judicial system. I won’t be surprised, just disappointed.

  • avatar

    Gee, this sounds very familiar as in Trump “colluded” with the Russians according to the Hillary Clinton campaign’s ordered and paid for Steele dossier that was given to an uncurious and compliant Obama DOJ and lamestream media, and which Hillary claims to know nothing about.

  • avatar

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

    Quite conveniently, of course it was Ghosn’s fault /s

  • avatar

    My reaction is to ignore the product, completely.

    • 0 avatar

      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.

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