Automaker Nissan’s board member Yasushi Kimura told press persons at a conference held in company headquarters at Yokohama that CEO Hiroto Saikawa has tendered his resignation early this week. Mr. Saikawa acknowledged that he had earned income from dubious sources and it would be best to pass on the mantle of leadership to new generation. Nissan’s board has accepted Saikawa’s resignation effective from September 16, 2019 and announced that a new CEO will be appointed next month. Demands for removal of Saikawa arose last year when his predecessor Carlos Ghosn was arrested on allegations of financial misconduct and grew shriller after Saikawa himself acknowledged that he had accepted unaccounted payments.
This income say resources were linked to stimulation of Nissan Motors stock price and he accepted that his pay increased as it was illicitly date adjusting for cashing. The firm’s board met to examine the allegations made against Saikawa and other issues related to corporate ethics that were highlighted by Ghosn during the investigation process. Board member Kimura affirmed that the income received by Saikawa was not illegal. Ghosn, who is presently out on bail, declared that he is innocent and has not been involved in any illegal activities as charged.
The board members comprising of Kimura and three other people, who investigated the allegations and have work backgrounds outside the company declared that the dubious activities of Ghosn and Greg Kelly led to losses worth $350 million to the company. Besides seeking damage repayment, the firm’s next focus is on finding a replacement for Saikawa. Till a successor is found, COO Yasuhiro Yamauchi will work as Nissan’s interim chief. There are 10 candidates under consideration. Saikawa stated that he was unaware of financial improprieties committed by him and all dubious income would be returned to the company and said that dubious payments were made due to inappropriate system created by Ghosn at Nissan. Japanese media however stated that he had made several hundred thousand dollars in extra income.