TOKYO (Pakistan Point News / Sputnik - 09th September, 2019) Nissan CEO Hiroto Saikawa will resign on September 16 after he admitted he was overpaid as part of a stock-related payment scheme, the company said on Monday.
"Today, the board of Nissan Motor Co., Ltd. held their regular Board of Directors meeting. Hiroto Saikawa had indicated recently his willingness to resign. After discussion, the Board asked him to resign as representative executive officer and CEO of the company, effective September 16, and he accepted. Effective the same day, Nissan's representative executive officer and COO, Yasuhiro Yamauchi, will become acting CEO," the company said in a press release.
Since late 2018, the giant Yokohama-based automaker has been shaken with a series of corruption and fraud scandals, which started after the arrest of its former chairman, Carlos Ghosn, on allegations of under-reporting his earnings and misusing company assets. The investigation is still underway.
According to reports, the company has discovered that six years ago, Saikawa himself adjusted the date of income receipt from shares on the day after the increase in their rate. Thus, he received about $440,000 more than he should have. Several of Nissan's other top managers were involved in speculations involving the receipt of income.
The company's financial situation has significantly deteriorated due to the ongoing corruption scandals. Nissan's operating profits fell by 40 percent year-on-year in the past fiscal year due to lower sales in Europe and the United States. In May, the company said it planned to cut 4,800 employees globally.
