Nissan board meets, but fails to select Ghosn replacement

Automaker’s CEO says he plans to be cautious in choosing a new board chair

YOKOHAMA, JAPAN— Nissan’s board met Monday but failed to pick a new chair to replace Carlos Ghosn, who was arrested last month on charges of violating financial regulations, saying more discussion was needed.

Nissan Motor Co. chief executive Hiroto Saikawa told reporters that the board approved a special committee of outsiders to strengthen gover- nance at the company. A date for the selection of a chair was not decided.

“We plan to be cautious in this process, and I do not plan to rush this,” Saikawa said. The recommendations for beefing up governance are due in March, and Saikawa said he was willing to wait until then to choose a chair.

The board meeting came amid an unfolding scandal that threatens the Japanese automaker’s two-decade alliance with Renault SA of France and its global brand, and highlights shoddy governance at the manufacturer of the Leaf electric car. Ghosn and another board member Greg Kelly were formally charged last week with falsifying financial reports in under-reporting Ghosn’s income by about 5 billion yen ($44 million U.S.) from 2011 to 2015. They were arrested Nov. 19 and remain in detention.

Asource close to Ghosn’s fam- ily says Ghosn is innocent, as the alleged income was never decided upon or paid.

Aubrey Harwell, the U.S. lawyer for Kelly, an American, says he is innocent and that Nissan insiders and outside experts had advised him that the financial reporting was proper.

The chair must be selected from among the board members. Three outside board members — race-car driver Keiko Ihara, Masakazu Toyoda, an academic, and Jean-Baptiste Duzan, formerly of Renault — are making that decision.

One candidate for chairman is Saikawa, who was hand-picked by Ghosn to succeed him as chief executive. He has denounced Ghosn and Kelly as the “masterminds” in a scheme to falsify income reports and abuse company money and assets.

Renault has kept Ghosn as chief executive and chairman, saying its investigation has not found wrongdoing