Nissan board says CEO has resigned, successor to be named

Nissan CEO Hiroto Saikawa is suspected of improperly adding ¥47 million ($440,000) to his compensation by altering the terms of a bonus. (AFP)
Updated 09 September 2019

Nissan board says CEO has resigned, successor to be named

  • Nissan CEO Hiroto Saikawa’s reported decision to step down comes days after he admitted receiving overpayments
  • Saikawa is suspected of improperly adding ¥47 million ($440,000) to his compensation

YOKOHAMA, Japan: Nissan Chief Executive Hiroto Saikawa tendered his resignation Monday after acknowledging that he had received dubious income and vowed to pass the leadership of the Japanese automaker to a new generation.

Board member Yasushi Kimura told reporters at an evening news conference at company headquarters in Yokohama that the board has approved Saikawa’s resignation, effective Sept. 16, and a successor will be appointed next month. A search is underway, he added.

Calls for Saikawa’s resignation, which arose after the arrest last year of his predecessor, Carlos Ghosn, on various financial misconduct allegations, have grown louder after Saikawa acknowledged last week that he had received dubious payments.

The income was linked to the stock price of Nissan, and he has said his pay got inflated by illicitly adjusting the date for cashing in.

The automaker’s board met to look into the allegations against Saikawa, as well as other issues related to Ghosn’s allegations and corporate ethics at the company.

Kimura said the income Saikawa had received was confirmed as “not illegal.”

Ghosn, who is out on bail and awaiting trial, says he’s innocent.

Saikawa has not been charged.

“I have been trying to do what needs to be done so that I can pass the baton over as soon as possible,” he told reporters earlier in the day, referring to his willingness to leave his job.

He did not attend the news conference.

Saikawa has said he didn’t know about the improprieties, promised to return the money and blamed the system he said Ghosn had created at Nissan for the dubious payments.

Japanese media reports said Saikawa had received tens of millions of yen (hundreds of thousands of dollars) in extra compensation.

Ghosn has been charged with falsifying documents on deferred compensation, which means he did not receive any of the money.

Nissan’s profits and sales have tumbled over the past year. Investors are also worried about Nissan’s relationship with alliance partner Renault of France, which owns 43 percent of Nissan. Ghosn was sent in by Renault to lead Nissan two decades ago.


India to invest $1.46 trillion to lift virus-hit economy

Updated 15 August 2020

India to invest $1.46 trillion to lift virus-hit economy

  • Modi announced a national digital heath plan under which every Indian will get an identity card containing all health-related information
  • Modi said the government has identified 7,000 infrastructure projects to offset the economic impact of the pandemic
NEW DELHI: India’s prime minister said Saturday his country has done well in containing the coronavirus pandemic and announced $1.46 trillion infrastructure projects to boost the sagging economy.
The key lesson India learnt from the pandemic is to become self-reliant in manufacturing and developing itself as a key supply chain destination for international companies, Prime Minister Narendra Modi said.
“The coronavirus epidemic is a big crisis, but it can’t stall India’s economic progress,’’ Modi said in a speech from New Delhi’s 17th century Mughal-era Red Fort to mark 74 years of the country’s independence from British rule. He wore an orange and white turban with a long scarf around his neck.
He also said that three vaccines are in different phases of testing in India and it will start mass production as soon as it got a green light from scientists. “Detailed plans are in place for large-scale production of corona vaccine and making it available to every Indian,” he said.
India’s coronavirus death toll overtook Britain’s this week to become the fourth-highest in the world as the country reported over 2.5 million confirmed cases, just behind the US and Brazil.
Modi also announced a national digital heath plan under which every Indian will get an identity card containing all health-related information.
The celebrations were curtailed on Saturday because of the pandemic, with invitations going only to 4,000 guests instead of normal 20,000, media reports said.
The International Monetary Fund projected a contraction of 4.5 percent for the Indian economy in 2020, a “historic low,” but said the country is expected to bounce back in 2021.
Modi said the government has identified 7,000 infrastructure projects to offset the economic impact of the pandemic.
“Infrastructure will not be created in silos anymore. All infrastructure has to be comprehensive, integrated and linked to each other. Multi-modal connectivity infrastructure is the way forward,” he said.
He said that India saw a record 18 percent jump in foreign direct investment in the past year, a signal that the international companies are looking at the country.
Modi didn’t refer to China directly, but India is trying to capitalize on its rival’s rising production costs and deteriorating ties with the United States and European nations to become a replacement home for large multinationals.
Referring to border tensions with China in the Ladakh area, he said Indian forces had given a befitting response in the mountainous region where thousands of soldiers from the two countries remain in a tense standoff since May. India said 20 of its troops died in hand combat with Chinese troops on June 15.
“Whether it’s terrorism or expansionism, India is fighting the challenges bravely,” Modi said in apparent references to threats from neighboring Pakistan and China.