Panel Urges Nissan to Scrap Chairman's Post after Ghosn Fiasco

Economy

Yokohama, March 27 (Jiji Press)--A special panel including experts urged Nissan Motor Co. <7201> on Wednesday to abolish the post of company chairman, following a series of misconduct by Carlos Ghosn, former leader of the major Japanese automaker.

In its final report, the panel called on Nissan to switch at the end of June to "a company with three statutory committees" where important management decisions are made mainly by outside board directors.

The governance reform panel concluded that the excessive concentration of power in Ghosn, former chairman of Nissan, led to his wrongdoing. The report was submitted to the Nissan board of directors on the day.

The panel proposed that a majority of board directors be selected from outside of Nissan, in order to strengthen the board's oversight of the firm's management.

Currently, Nissan has nine board members, including Ghosn. Only three of them are outside directors.

[Copyright The Jiji Press, Ltd.]

Jiji Press