Nissan proposing more board members, with Renault's Bollore

Combined Shape

TOKYO (AP) — Nissan proposed Friday adding Renault’s chief executive, Thierry Bollore, to its board, as well as several outsiders, to strengthen its governance following the arrest of its former chairman, Carlos Ghosn.

The Japanese automaker’s proposals will be put to a shareholder vote at a meeting set for June.

Yokohama-based Nissan Motor Co. said it will retain Hiroto Saikawa as its chief executive and a board member. It also wants to add Sony Interactive Entertainment’s former chairman, Andrew House, and Nihon Michelin Tire’s chairman, Bernard Delmas, to the board.

Nissan’s proposal calls for an 11-member board, including seven outside directors. The board now has eight members, including Jean-Dominique Senard, chairman at French alliance partner Renault SA, who was approved by shareholders earlier this year.

Ghosn is facing financial misconduct charges. He says he is innocent.

Trending:
CNN Fact Check Shows Biden Made Up Fake People to Support Jobs Plan

A Nissan governance committee set up after Ghosn’s arrest recommended adding more independent outside directors to oversee the company’s compensation and auditing.

“Nissan sees the re-establishment of a highly robust corporate governance structure as imperative,” Nissan said in a statement. “With the lessons from the recent executive misconduct still fresh, Nissan resolves to rigorously pursue separation of supervisory and executive functions.”

Governance experts say Nissan lagged behind other major Japanese companies in governance measures, such as having outside board directors and instituting checks on compensation.

Renault owns 43 percent of Nissan and the Japanese automaker owns 15 percent of Renault. The French automaker sent Ghosn to Nissan in 1999 to help rescue it from the brink of bankruptcy. Under his guidance over the next two decades it was transformed into one of the most successful auto alliances in the industry.

Earlier this week, Nissan reported its profit for the fiscal year that ended in March plunged to about half of what it was the previous year. It is projecting a further deterioration in its earnings.

___

Follow Yuri Kageyama on Twitter https://twitter.com/yurikageyama

On Instagram https://www.instagram.com/yurikageyama/?hl=en

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →






We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation