Nissan creates committee to improve governance after Ghosn arrest

Issei Kato | Reuters

Passersby are silhouetted as a huge street monitor broadcasts news reporting ousted Nissan Motor chairman Carlos Ghosn’s indictment and re-arrest in Tokyo, Japan December 10, 2018. 

Nissan has formed a special committee aimed at boosting corporate governance following the arrest of former Chairman Carlos Ghosn.

Ghosn was apprehended in Japan last month over over allegations that he had been under-reporting compensation and misusing company funds.

The special committee, announced Monday, is to be formed of independent third party members as well as outside directors, and will lay out recommendations on how to improve the firm’s approval process for setting compensation for directors and creating “a healthy state of governance.”

“It has been confirmed that the proposed in dependent third parties are not related to or with any interest in the company, including any direct business with Nissan,” the firm said in a press statement Monday.

The automaker did not, however, name a successor to replace Ghosn as chairman. Chief Executive Hiroto Saikawa reportedly said Monday that talks to replace the embattled auto executive were ongoing, and that there was no deadline to announce a successor.

The future of the global auto alliance between Nissan, Renault and Mitsubishi, which Ghosn had overseen for almost two decades, has been in doubt following his arrest and removal as chairman.

Both Nissan and Mitsubishi have ousted Ghosn, while Renault’s board last week decided that he should stay in office. Last week, Renault said the board had found no irregularities in his pay packages between 2015 and 2018, and that the approval of his compensation was in compliance with the law.

Nissan said it expects to receive recommendations from the special committee by March 31, 2019.