Business / Corporate

Nissan considers scrapping advisory roles for former executives

JIJI

Nissan Motor Co. may stop placing former executives in advisory posts as part of an overhaul to its corporate governance practices following the ousting of former Chairman Carlos Ghosn, sources said Wednesday.

The possible abolition of the komon adviser and sōdanyaku consultant posts is aimed at making the company’s decision-making process more transparent, by preventing former executives from exerting influence on management.

With Nissan due to report to the Tokyo Stock Exchange as early as this month, including on measures to prevent irregularities, the scrapping of the advisory posts is expected to be in the report.

While the automaker does not disclose the number of people in the advisory posts or other details, those currently in the posts include former co-Chairman Itaru Koeda and former Executive Vice President Hitoshi Kawaguchi.

If the advisory posts are scrapped, members of Nissan’s former leadership team, including former President and Chief Executive Officer Hiroto Saikawa, will not be allowed to remain in the company.

Saikawa is set to resign from the automaker’s board at an extraordinary shareholders’ meeting in February.

Nissan is accelerating governance reforms after it shifted last June to a corporate regime that gives stronger authority to outside directors.

Meanwhile, the company is working promptly to rehabilitate its management under new President and CEO Makoto Uchida, who moved into those positions in December.

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