A source close to the matter said Tuesday, Nissan Motor Co plans to sharply cut CEO Hiroto Saikawa’s remuneration for fiscal 2018 for overlooking former Chairman Carlos Ghosn’s alleged financial misconduct.
Saikawa, who received around 500 million yen ($4.57 million) in fiscal 2017, may be asked to return part of his remuneration instead of getting his pay reduced, the source said.
The company holds a general shareholders’ meeting every June to seek approval for directors’ remuneration among other agenda items.
In fiscal 2018, Nissan posted dismal earnings, weighed down by weak U.S. sales. Group net profit plunged 57.3% to 319.14 billion yen in the year, a nine-year low.
Having served as a close assistant of Ghosn, Saikawa was appointed CEO in April 2017. Ghosn has been indicted over his alleged transfer of private investment losses to Nissan and underreporting remuneration by around 9.1 billion yen in the company’s securities reports submitted to Japanese regulators for 8 years through March last year.
Nissan dismissed him as chairman shortly after his arrest last November and removed him from the board in April.