Nissan CEO to quit over pay fracas

YOKOHAMA Nissan Motor Co CEO Hiroto Saikawa will resign on Sept. 16, the automaker said on Monday, bowing to pressure after he admitted to being improperly overpaid and marking further upheaval at a company battered by scandal and plunging profit.

Saikawa, who admitted to the overpayment of around $440,000 last week, will be temporarily replaced by chief operating officer Yasuhiro Yamauchi, with a permanent replacement expected by the end of October, Japan’s second-largest automaker said.

His sudden resignation, which comes before a long-term succession plan has been decided, marks a dramatic exit for a man who had been tasked with righting the automaker following the arrest and ouster of former chairman Carlos Ghosn last year on charges of financial misconduct, which Ghosn denies.

Saikawa, a protege of Ghosn, took over as Nissan CEO from his mentor in 2017, leaving Ghosn as chairman.

His brief tenure has been characterized by strain with top shareholder Renault SA and tumbling profit. Nissan’s shares have lost almost a quarter of their value this year.

The worsening relationship with Renault has been a particular concern for investors and has cast doubt on the future of the Franco-Japanese auto alliance at a time of sweeping change and uncertainty in the global industry.

“Saikawa recently has indicated his inclination to resign, and in line with his desire to pass the baton to a new generation of leaders at Nissan, he will resign on Sept. 16,” Nissan’s chairman of the board, Yasushi Kimura, told a news conference.

Saikawa said he would return the improper compensation.