Panel to propose Nissan pick majority of board from outside

A Nissan Motor Co governance committee will likely propose that outside directors make up a majority of the board in a bid to ensure more transparency following the arrest of former boss Carlos Ghosn, sources close to the matter said Saturday.

But the panel, which will draw up a report in late March, is not expected to delve into the responsibility of current Nissan executives, including President Hiroto Saikawa, for the governance problems that have led to Ghosn's alleged financial misconduct, for which he has been detained in Japan since his arrest in November, the sources said.

Currently, Nissan's nine-member board only includes three outside directors. By increasing the ratio of outside members, the panel is aiming to have them play a leading role in nominating executives and determining their remuneration, the sources said.

Ghosn has been charged with understating his remuneration for a number of years in Nissan's securities reports and transferring derivatives losses from his private asset management company to the Japanese automaker.

Nissan, which brought the allegations to prosecutors following a whistleblower tip, has said it did not have enough checks on Ghosn's power during his two-decade reign.

The committee is expected to make its proposals at Nissan's board meeting in mid-April, according to the sources. It has also discussed Nissan's cross-shareholdings with French partner Renault SA but will not make any proposal on the issue amid differing views among its members.

Renault holds a stake of more than 40 percent in Nissan while the Japanese group owns around 15 percent in Renault, a structure that some Nissan executives have seen as unfair.

Source : https://japantoday.com/category/business/panel-to-propose-nissan-pick-majority-of-board-from-outside

Source: https://japantoday.com/category/business/panel-to-propose-nissan-pick-majority-of-board-from-outside