{"id":1093,"date":"2019-09-18T17:26:28","date_gmt":"2019-09-18T21:26:28","guid":{"rendered":"http:\/\/blogs.shu.edu\/stillmanexchange\/?p=1093"},"modified":"2020-09-12T09:20:43","modified_gmt":"2020-09-12T13:20:43","slug":"nissan-ceo-ousted-as-a-result-of-pay-scandal","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/stillmanexchange\/2019\/09\/18\/nissan-ceo-ousted-as-a-result-of-pay-scandal\/","title":{"rendered":"Nissan CEO Ousted as a Result of Pay Scandal"},"content":{"rendered":"

By Stephanie Gills<\/strong>
\nInternational Business Writer<\/strong><\/em><\/p>\n

\"\"
Nissan Motor Company Chief Executive, Hiroto Saikawa (Photo courtesy of The New York Times)<\/em><\/figcaption><\/figure>\n

According to Reuters, Nissan Motor Company Chief Executive, Hiroto Saikawa, considers his resignation as \u201cpassing the baton to the next generation\u201d despite his argument of being improperly compensated.<\/p>\n

Sources say Saikawa desired to resign from his position at Nissan and is not \u201cclinging to his chair.\u201d<\/p>\n

By unanimous vote, Nissan\u2019s CEO is due to step down on September 16 and will be replaced by Chief Operating Officer, Yasuhiro Yamauchi, until the board finds a permanent CEO, reports the Wall Street Journal.<\/p>\n

Discussions about Saikawa\u2019s departure arose after June\u2019s annual shareholder meeting, where they discovered the company\u2019s accruing losses.<\/p>\n

After a company investigation uncovered Saikawa received illegitimate stock-based compensation of approximately $439,000 in 2013, Nissan\u2019s board put Saikawa\u2019s removal to a vote. According to Nissan director, Yasushi Kimura, the board \u201cbelieved immediate action was appropriate.\u201d<\/p>\n

At a news conference, Saikawa stated that he was leaving earlier than planned and had no idea of improper stock-based compensation but would return the excess pay. Debates erupted over Saikawa\u2019s immediate departure and some board members wished for him to remain in his position until a new CEO is found. Nonetheless, Nissan hopes to find a replacement successor by the end of October.<\/p>\n

Nissan Motor Co. suffers from declining sales and profit. In the April \u2013 July quarter, Nissan\u2019s profit dropped 98.5 percent. Amidst this, trouble with the company increases as debates over Renault\u2019s shareholder structure continues. Nissan plans to cut 12,500 jobs or nine percent percent of its global workforce in July.<\/p>\n

Just last November Nissan\u2019s president, Carlos Ghosn, was imprisoned for financial crimes. He now awaits trial in Tokyo but remains consistent in his argument of innocence.<\/p>\n

As Ghosn\u2019s replacement, Saikawa is criticized of continuing Ghosn\u2019s \u201cabuses of power.\u201d Saikawa is accused for contributing to Nissan\u2019s dismissal business performance.<\/p>\n

Saikawa joined Nissan in 1977 after graduating from the University of Tokyo. He was known for having a spock-like personality; highly intelligent and very calm. He helped mitigate the Renault share in order to cut some of Nissan\u2019s costs. He played a key role in Nissan\u2019s advancement, yet always preferred to be behind the scenes.<\/p>\n

Yasuhiro Yamachi, Saikawa\u2019s temporary replacement, has worked for the company since 1981. He also has experience in business with Renault.<\/p>\n

 <\/p>\n

Please contact Stephanie at stephanie.gills@student.shu.edu<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

According to Reuters, Nissan Motor Company Chief Executive, Hiroto Saikawa, considers his resignation as \u201cpassing the baton to the next generation\u201d despite his argument of being improperly compensated.<\/p>\n","protected":false},"author":4872,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[46,70,71,45],"class_list":["post-1093","post","type-post","status-publish","format-standard","hentry","category-international","tag-46","tag-nissan","tag-scandal","tag-september"],"_links":{"self":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/1093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/users\/4872"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/comments?post=1093"}],"version-history":[{"count":4,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/1093\/revisions"}],"predecessor-version":[{"id":1349,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/1093\/revisions\/1349"}],"wp:attachment":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/media?parent=1093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/categories?post=1093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/tags?post=1093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}