Nissan's Overcompensation Scandal Grows With New Inquiry
Further inquiry into Nissan has found that other executives were also overcompensated, thus prolonging a scandal that has weakened the automaker.
Carlos Ghosn, Nissan’s former chairman, was removed from his role in the company because of compensation issues. He overcompensated himself and the scandal rocked Nissan. Lawyers from an outsider law firm were tasked with further investigating Nissan. The law firm that Hari Nada, the head of Nissan’s legal department and security office, had also been improperly overcompensated. Additionally, Nada was the lead person behind the efforts to get rid of Ghosn.
These findings were shared with Nissan’s board of directors. However, this information was not effectively communicated to the entire board of directors. Solely those who attended the meeting on September 9th had been told this information and shortly after a statement was released by Nissan clearing a group of executives.
Nada has also tried to influence the current inquiries into Nissan. These efforts come after he claimed to have removed himself from the inquiries in order to avoid conflicts of interest. Two in-house lawyers at Nissan have corroborated these claims.
Nissan has been experiencing a drop in profits and plans to lay off possibly 12,500 employees throughout its global operations.