Nissan to adopt new structure to avoid concentration of power in one person
Vehicle maker to set up new governance structure following the arrest of former chair Carlos Ghosn
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 vehicle maker to set up an external panel to review its corporate governance. The committee’s seven members were to issue their findings late on Wednesday, which coincides with the 20th anniversary of Nissan’s alliance with Renault that brought the automotive 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 ...
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