Despite already being the best-paid executive in the automotive industry, Carlos Ghosn is set to receive another paycheck from Mitsubishi Motors.
With Renault-Nissan having recently acquired a 34 percent stake in the company, Ghosn is poised to take his position as chairman of Mitsubishi Motors Corporation. If you recall, the purchase followed after the sixth-biggest Japanese automaker threw the towel upon revealing a long-running fuel economy test rigging.
Details of the salary package have yet to surface, although a shareholder voting last week confirms Ghosn’s position as chairman of Mitsubishi. In the vote, shareholders agreed to pay 11 directors a combined total of three billion yen ($26.06 million) – two billion as salary, with one billion set aside as stock options. The threefold increase over last year’s payment comes despite Mitsubishi being on their way to posting a huge loss for 2016 following the fuel economy scandal.
While some shareholders express concern over paying a huge amount, Mitsubishi CEO Osamu Masuko brushed these aside, “We didn’t think it was appropriate to reduce compensation while prioritizing the company’s recovery,” he said. “Compensation (excluding stock options) will not be doubled if we don’t return to the black next year, for example. Because compensation will be merit-based, if our performance is not good, director salaries will reflect that,” Masuko adds.