The document of 32 pages published this Wednesday, is relentless against Carlos Ghosn. After almost two months of work, the special committee comprised of four experts and three independent directors, appointed by Nissan to work on its governance, has handed in its conclusions. He performed the autopsy on “system Ghosn”, characterised according to the report by “a corporate culture that did not allow to say “no”, and “in which” nobody could object to Mr. Ghosn”. The latter “was deified at Nissan,” insists the committee that evokes a “cult of personality”.
The main steps of the case Carlos Ghosn – Watching on Figaro Live
The committee, which presented its findings at a press conference on Wednesday in Yokohama, concluded from their work that the suspicion of a use for private purposes of the funds of the group were based. The report list in particular for the acquisition of the apartment in Rio, and home to Beirut by a company, Zi-A, which was originally intended for investments, the payment of commissions of council to the eldest sister of Carlos Ghosn, the use by the ex-CEO and his family of the aircraft of the company for private purposes, and the transaction of 2008, which is the subject of a charge of Carlos Ghosn by the justice.
“Until June 2018, and the appointment of two independent directors, the average duration of the meetings of the board of directors of Nissan was less than 20 minutes”
The lack of counter-power at Nissan seems obvious. “Until June 2018, and the appointment of two independent directors, the average duration of the meetings of the board of directors of Nissan was less than 20 minutes,” notes, for example, the document. It also describes a system in which many critical functions (human resources, remuneration of executives, including Carlos Ghosn, internal audit, legal department) were concentrated under the authority of the CEO. As a result, the divisions of the group that could be brought to raise questions about some payments were not able to detect the problem. When questions were asked, a few leaders around Carlos Ghosn, Greg Kelly, was also charged by the justice, japan, “refused to provide detailed explanations, responding simply that it was “topics CEO” (the CEO matters”)”.
“cost Reductions excessive”
The load does not stop there. The “concentration of power” is also criticized on a more strategic level. She is rendered responsible to a policy-oriented objectives for short-term performance and cost reductions excessive”, to the detriment of the issues of safety, health, training. Of the experienced employees were lost, and were replaced by employees of a specified duration. This, says the committee, “can be a cause of the deficiencies identified in the quality control of the vehicles”. Nissan was known last year a scandal of quality control.
The committee has also given its recommendations in order to standardize the governance of NIssan. It offers a system similar to that which governs the western companies, with a board of directors more open to independent members, and three committees (audit, nominations, remuneration) would be set up. The redesign of the governance will be on the agenda of the general assembly of Nissan in the month of June. On April 8th, an extraordinary general meeting is also convened, for the sole purpose of appointing Jean-Dominique Senard, the new president of Renault, to the board of directors of Nissan, he might be the vice-president.
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