In a bid to improve corporate governance and prevent financial misconduct incidents from happening in the future, Nissan announced that they will be reducing the compensation of its CEO, Hiroto Saikawa for the fiscal year ending March 31, 2020. Specifically, Saikwa's compensation will be halved that of what he received during the fiscal year ended March 31, 2019.
According to Nissan, the reduced compensation comes in light after the company's former chairman, Carlos Ghosn, was charged with financial misconduct together with former director Greg Kelly. Ghosn and Kelly reportedly conspired to under-report the former chairman's annual income at Nissan by around JPY 5 billion in a span of five years since 2011. Last January, Nissan and Mitsubishi claim that Ghosn received improper payments amounting to JPY 1 billion from a joint venture called Nissan-Mitsubishi B.V. (NMBV).
Because of the charges, Ghosn has since been ousted as chairman both at Nissan and Mitsubishi. Since then, both manufacturers have begun to restructure and set put in new measures in order to prevent such incidents from happening again. Nissan has already created a special committee in order to improve corporate governance. Meanwhile, Mitsubishi has reshuffled its executives such that the positions of CEO and chairman of the board will not be held by one person alone.
Ghosn has since maintained his innocence and is currently awaiting trial in Japan over charges of financial misconduct.