Nissan CEO Saikawa to resign once replacement is found

In the aftermath of the scandalous exit of Nissan Motors’ former Chairman Carlos Ghosn, the current CEO, Hiroto Saikawa, is facing mounting pressure to leave the company. Saikawa has agreed to take on the responsibility for scandals surrounding the Ghosn, however, reiterated that he will not be held responsible for allegations of excess compensation. 

The demand for his resignation has increased as some reports last week suggested that Saikawa and other executives were paid a lot more than their due entitlement. Job cuts, decade-low profits and financial crimes from Ghosn continue to impact the carmaker. Ghosn, who was arrested last November, had been at the helm of the company for about two decades. 

Now, Nissan’s board has started to review succession plans for the company. As Renault SA is one of the biggest investors and partners of Nissan, the pressure to put in place a robust succession plan in order to find the right replacement for Saikawa is also mounting. 

For Saikawa, the goal is to ensure that the alliance with Renault is secure and will continue to ensure that during the remainder of his time with Nissan. 

However, Saikawa acknowledged that he received more equity-linked pay than his due entitlement as per the organizational rules. Having said that he would be returning the money, his bonus amounted to about 47 million yen ($440,000) as per the 2013 Nissan’s share price. 

The change in leadership would help appease investors and might help stabilize the company’s stock that fell 30 percent since Ghosn’s arrest. Earlier this year, Saikawa approved a retirement deal for Ghosn. Apart from Saikawa’s impending exit, Christina Murray, the vice-president who was responsible for audit and compliance, will leave the company on Sept. 10. 

Image credit:CNA