Nissan urged to shake up governance after ‘too powerful’ Ghosn
YOKOHAMA, JAPAN: An advisory committee established by Japanese car giant Nissan to improve governance after the stunning arrest of former boss Carlos Ghosn on corruption allegations unveiled recommendations to prevent further scandals.
The seven-person body suggested abolishing the position of chairman vacated by Ghosn, with an external administrator running meetings of the board, where independent members would hold the majority.
“I think it's a bold proposal to remove the chairman's position” which exists in many Japanese companies, Sadayuki Sakakibara, co-chairman of the advisory committee, told reporters on Wednesday.
The other co-chairman, Seiichiro Nishioka, said the main cause of the misconduct was “the concentration of authority in Ghosn”.
“He created a situation in which it would be difficult to detect his pursuit of personal gain,” Nishioka added.
Nissan was rocked when Japanese prosecutors said Ghosn had deferred his salary by nine billion yen (US$81 million) over a period of eight years.
They also charged him with attempting to shift personal losses onto the company books.
In an emotional news conference on the dramatic night of Ghosn's arrest on November 19, chief executive Hiroto Saikawa said his former mentor had held too much power alone.
Ghosn was swiftly removed as chairman and the advisory body set up to improve Nissan governance amid questions over how this could have happened at such a major company.
A spokesman for Ghosn said the allegations in the report “will be revealed for what they are: part of an unsubstantiated smear campaign against Carlos Ghosn to prevent the integration of the Alliance and conceal Nissan's deteriorating performance.”