Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.
BREAKING NEWS

Nissan to boost external board seats, set up compensation committee - source

Nissan to boost external board seats, set up compensation committee - source
FILE PHOTO: The logo of Nissan Motor Co is seen at its showroom in Tokyo, Japan November 20, 2018. REUTERS/Toru Hanai -
Copyright
TORU HANAI(Reuters)
Euronews logo
Text size Aa Aa

By Maki Shiraki

TOKYO (Reuters) - Nissan Motor Co Ltd <7201.T> plans to boost the number of external board members and set up a committee to oversee compensation as part of its effort to improve governance following the arrest of former Chairman Carlos Ghosn for financial misconduct, a source said.

Critics have said Nissan lacked adequate governance, with few truly independent voices on the board capable of questioning Ghosn and looking out for regular shareholders’ interests.

The company has not yet decided how many more external board seats to add, according to the source, who has knowledge of the matter but requested anonymity as the talks are still confidential.

The current three external board members include retired Renault SA <RENA.PA> executive Jean-Baptiste Duzan, considered to represent the views of the French automaker which is Nissan’s biggest shareholder. The other two external board members are former bureaucrat Masakazu Toyoda and racing car driver Keiko Ihara. 

Ghosn was indicted on Monday under-reporting his income. The company also cited multiple instances of financial misconduct including personal use of company assets. 

Ghosn's detention has left the Renault-Nissan-Mitsubishi auto alliance without its leader.

Nissan is 43.4 percent owned by Renault. While almost 60 percent bigger by sales, it remains the junior partner in their shareholding hierarchy with a smaller reciprocal 15 percent non-voting stake in the French firm. Renault’s biggest shareholder is the French state with 15 percent.

(Reporting by Maki Shiraki; Writing by Ritsuko Ando; Editing by Lisa Shumaker)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.