Nissan CEO Resigns After Admitting He Was Overpaid

• Nissan CEO Hiroto Saikawa has officially resigned.
• Days before the announcement, Saikawa admitted in media interviews that he has been overpaid.
• Ongoing investigations are now looking at the details of how Saikawa and other top executives intentionally manipulated the system to increase their earnings.

If you’re working for a big company, being overpaid is probably a good problem to have. Besides, who wouldn’t want to enjoy more money to spend, right? Well listen up, everyone!

A Nissan CEO recently made headlines after announcing his resignation several days after confessing that he, along with other top Nissan executives, have been earning more than they deserve.

According to the company, Chief Executive Officer Hiroto Saikawa has formally stepped down from his post following a meeting with the board of directors. Yasuhiro Yamauchi has since been appointed as acting CEO as Nissan looks for a new person to fill the position.

A few days before his resignation, Saikawa admitted in an interview that he and other top executives have been overpaid because of a “stock-related plan,” reported CNN. However, he clarified that he did not get involved in any illegal activities and that he intends to return the money.

Yasushi Kimura, board chairman of Nissan, agreed that the program was indeed not illegal but was “intentionally manipulated” to increase the executives’ earnings.

He pointed out:

“As a governance issue, we take it seriously.”

Meanwhile, the board likewise shared that investigations are currently ongoing regarding alleged misconduct by former chairman Carlos Ghosn along with former director Greg Kelly. And while the company’s directors have admitted to losing billions in damages, they have refused to reveal specific details pending the investigations. Despite his denial of the allegations, Ghosn has since been placed under house arrest.

Before the controversy made headlines, Nissan has faced multiple challenges under the leadership of Saikawa, including huge profit loss, and he said that the automobile manufacturer has hit “rock bottom.” They’ve also previously announced that they plan to reduce around 12,500 workers across the world.