On Monday, Nissan’s CEO Hiroto Saikawa has planned to resign, reported source, days after confirming that he was overpaid than his entitlement.
The reports continued that it was not immediately clear when Mr. Saikawa would step down from his position, as the crisis-hit auto giant of Japan is struggling from the aftermath of arrest of its former Chief Carlos Ghosn over charges of financial misconduct.
Nissan said that it won’t immediately comment on the report, which first emerged last night in the Nikkei Business Daily.
It continued that Mr. Saikawa has told several executives of his purpose, but had no specific date for his resignation nor a successor has been yet decided.
The reported decision comes days after Nissan’s CEO has acknowledged that an investigation has revealed that he was overpaid, in a scheme under which Directors can seek a bonus if their company’s share amount rises above a certain level in a set tenure.
Hiroto Saikawa is alleged of illegally adding 47 million Yen to his bonus by altering the terms, reported source.
Nissan hasn’t yet confirmed the details of payments, but he apologized and denied any wrongdoings.
Mr. Saikawa was quoted saying, “I left the issue to someone else so I had thought it was dealt with in an appropriate manner.”
Nissan is about to hold a board meeting, where details of the probe that revealed the overpayments are likely to discuss.
It is currently undergoing remodeling intended to strengthen governance after the former Chief’s scandal.
In June, shareholders of Nissan has voted in favor of several measures including the establishment of three latest oversight committees reliable for the appointment of senior officials, auditing, and pay issues.
They further approved the election of 11 Directors as the firm restructures, among them two executives for Renault and Hiroto Saikawa.
The reforms are taken to put the Japanese auto-giant on a more stable condition after the arrest of Carlos Ghosn, who has been expelled from his leadership roles at Nissan and others.
Mr. Ghosn is awaiting trial on charges of under-reporting millions of dollars in salary and of using their funds for personal expenses.
He has also refused any wrongdoing and accused executives of Nissan to his plans to boost the firm with French Renault of plotting against him.