Nissan Sets Up New Oversight Body, Pledges to Tell Renault Everything

Pressed into swift reorganization after the arrest of its chairman, Carlos Ghosn, Japanese manufacturer Nissan announced this week the implementation of a set of measures meant to ensure a smooth transition to new leadership.
Carlos Ghosn 1 photo
Photo: Nissan
Back in November, the carmaker said it would create a new body tasked with advising the company in governance management and enhanced governance of director compensation. That body was officially created on Monday, following Nissan’s decision to establish the Special Committee for Improving Governance.

This committee will comprise unnamed external independent experts, recommended by Masakazu Toyoda, Keiko Ihara and Jean-Baptiste Duzan.

The new committee will be tasked with finding out the causes of the illegalities allegedly committed by Carlos Ghosn, and based on its findings provide recommendations as to how to improve “approval processes and governance for determining director compensation.”

As for the acceptance of a new chairman of the board, Nissan says discussions will continue. So will the company’s willingness of keeping alliance partners informed about all and any developments in the matter.

More importantly, Nissan said it is ready at any time to provide a "full briefing at a Renault board meeting in order to maintain an equal understanding among the Alliance partners."

Last week, Nissan and Carlos Ghosn, accompanied by Greg Kelly, were officially indicted for violating the Japan Financial Instruments and Exchange Act.

Nissan’s year-end debacle started in November, out of the blue, with the announcement of Ghosn arrest and ousting following reports of financial and other significant misconduct.

Allegedly Ghosn conspired with Nissan director Kelly to understate his compensation to about half of the $88 million received from 2011 to 2015, thus cheating Japanese authorities of the taxes owed for about $35 million.

Having the company pay for personal vacations, buy houses and make donations on his behalf are also things Ghosn is being accused of.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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