Ready to resign once successor is found, says Nissan’s Saikawa

Bloomberg

Nissan Motor Co Chief Executive Officer Hiroto Saikawa said he won’t resign for being at the centre of turmoil over excess compensation, but is ready to take responsibility for scandals involving former chairman Carlos Ghosn and will exit as soon as a successor is found.
Following reports that he and other Nissan executives were paid more than they were entitled to, Saikawa has been facing mounting pressure. It’s the latest blow to the CEO, who has spent the period since Ghosn’s shock arrest last November for financial crimes trying to right the carmaker as it grapples with decade-low profits, job cuts and the destabilisation of losing a leader who loomed large over Nissan for two decades.
“I’m not responsible for that,” Saikawa, 65, told reporters, when asked about stock-linked bonuses that were inflated when they were paid out in 2013. “I will take responsibility for the Ghosn scandals, and want the board’s nomination committee to find a succession plan as soon as possible in order to pass the baton.”

Board Meeting
Nissan’s board was expected to meet on Monday to discuss the excess pay issue, while it was supposed to also review a plan for Saikawa’s replacement, according to people familiar with the matter. Pressure is building for that process to be accelerated, and has the support of Renault SA, Nissan’s biggest investor and partner in the world’s largest auto alliance, some of the people said, asking not to be identified discussing a private matter.
Saikawa added that he wanted to work to make sure the alliance with Renault is secure. “While keeping Nissan’s independence, I believe I’m the leader most open to the alliance,” he said.
As senior management at the company deliberate a future without Saikawa, a number of options are being considered. They include appointing Nissan Chief Operating Officer Yasuhiro Yamauchi as interim CEO, the people said. The board would then set a timeline for a permanent successor, they said.
A representative for Renault declined to comment on the succession issue.
Saikawa told his colleagues of his intention to resign, although the exact date is yet to be decided, the Nikkei newspaper and Kyodo News reported.
It’s an ironic turn of events for Saikawa, who went from being Ghosn’s protege to the public face of the accusations against him. Nissan’s CEO appeared before the world’s media just hours after the former chairman’s November 19 arrest to denounce his behaviour, describing his “indignation” and “despair” at the conduct of his former boss.
Like Saikawa now, some of the allegations against Ghosn related to pay. The former chairman is currently out on bail, due to face trial in Tokyo next year on charges he failed to disclose compensation from Nissan, passed on trading losses to the carmaker and redirected company money into his own accounts. Ghosn denies all the allegations.
Saikawa acknowledged that he received more equity-linked pay than he was entitled to under company rules. He’s said that he’ll return the money, a bonus of about $440,000 paid out in 2013 linked to Nissan’s share price. Other executives — including Senior Vice President Hari Nada, a key whistleblower against Ghosn — are also said to have been overpaid.