Nissan plans to prevent another Carlos Ghosn debacle
Carmaker is set to adopt a new governance structure to avoid power being concentrated in the hands of a single executive
Tokyo — Nissan is set to adopt a new governance structure aimed at preventing the pitfalls of concentrating power in the hands of a single executive. The shock arrest of former Nissan chair Carlos Ghosn for financial crimes in November spurred the carmaker to set up an external panel to review its corporate governance. The committee’s seven members will issue their findings late on Wednesday, which coincides with the 20th anniversary of Nissan’s alliance with Renault SA that brought the auto industry titan to Nissan. “Nissan didn’t have any committees whatsoever, it was just Carlos Ghosn deciding it,” said Zuhair Khan, an analyst at Jefferies in Tokyo. “There needs to be a clear feeling that what is done is correct, and it has to be evaluated by people who have no conflict of interest.” As chair of Renault, Nissan and Mitsubishi, Ghosn enjoyed unprecedented power. Prosecutors say he used his position to falsify financial information and boost his compensation — charges he has denied...
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