Will Nissan CEO Saikawa face calls to resign over pay scandal?

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Nissan CEO Saikawa is not currently facing calls to resign over the pay scandal.

Nissan Motor Co. is not presently considering asking CEO Hiroto Saikawa to step down, despite his admission of receiving overpaid compensation in breach of internal procedures. An internal investigation confirmed that Saikawa and other executives were beneficiaries of improper remuneration, a finding that raises concerns about governance improvements following the arrest of former Chairman Carlos Ghosn.
No Consideration for Resignation

Sources with direct knowledge of the situation have indicated that there is no current contemplation of asking Hiroto Saikawa to resign from his position as CEO. One source explicitly stated, "It’s not going to happen. I don’t think it will," when questioned about Saikawa potentially resigning to assume responsibility for the alleged misconduct. This source also noted that there is "no illegality" involved in the matter.
Admission of Improper Compensation

Saikawa has acknowledged receiving stock-related compensation under a scheme that originated during the tenure of former Chairman Carlos Ghosn. He apologised for the improper payments, which included tens of millions of yen received through a stock appreciation rights scheme. Saikawa has pledged to return any funds that were improperly paid to him.
Internal Investigation Findings

An internal investigation conducted by Nissan revealed that Saikawa and other executives had been recipients of improper compensation. These findings were disclosed on Wednesday during a meeting of Nissan’s audit committee. The revelations have cast doubt on Saikawa's commitment to enhancing the company's governance practices, particularly in light of the previous allegations against Carlos Ghosn.

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Will Nissan CEO Saikawa face calls to resign over pay scandal?

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