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Nissan CEO Hiroto Saikawa resigns after admitting to being overpaid

2019-09-09

Nissan CEO Hiroto Saikawa resigned Monday, after he admitted he had been overpaid.

Internal investigations from Audit Committee in the company revealed that Saikawa had received dubious income of 96.5 million yen after taxes paid over two dates — equal to more than $900,000 dollars.

“It would have been better if I had been able to resolve everything first,” Saikawa told reporters at the end of a news conference at company headquarters in Yokohama, Japan, following his announced resignation.

Saikawa’s resignation as CEO will be effective as of Sept. 16, the company said in a statement. He had expressed intentions to resign, but the decision became official Monday when the Board of Directors asked for Saikawa’s resignation.

Former Chairman and Representative Director Carlos Ghosn and former Representative Director Greg Kelly were involved with other financial misconduct allegations totaling 35 billion yen or more — or approximately $326.6 million, Nissan said in the investigation abstract.

Saikawa said he will return the money paid to him, and Nissan is seeking a repayment of all the damages lost.

Yasushi Kirumi, board member, confirmed the money Saikawa received was “not illegal.”

Ghosn, however, has been charged with falsifying documents on deferred compensation that he did not receive and breach of trust for allegedly funneling Nissan’s money for his personal gain. Ghosn and Kelly have been arrested, and

Yasuhiro Yamauchi, Representative Executive Officer, decided to act as CEO at the meeting Monday, and a nominating committee will select a succeeding CEO at the end of October.

“Going forward, Nissan will continue to take necessary measures based on the findings of the company’s internal investigation, including legal action to claim damages, in order to account for the responsibility of the former chairman and others,” Nissan said in a statement announcing the investigation into the alleged financial misconduct.

With News Wire Services