Nissan CEO says Ghosn had too much power
Print Edition
Nissan Chief Executive Makoto Uchida told a Japanese court yesterday that the company’s former chairman, Carlos Ghosn, had held too much power, failed to listen to others and stayed on for too long.
Uchida said those were factors that led to financial misconduct charges against Ghosn. He was testifying as a witness for Nissan, which as a corporate entity is standing trial on charges of having falsified securities reports by under reporting Ghosn’s compensation. It does not contest the charges.
Greg Kelly, an American former executive vice president for Nissan, also is on trial on charges of failing to fully report Ghosn’s compensation. Both he and Ghosn have adamantly insisted they are innocent.
Ghosn was arrested in 2018, but fled to Lebanon while out on bail. Lebanon does not have an extradition treaty with Japan.
“I felt ashamed and miserable when I learned that something this outrageous was happening,” Uchida told the Tokyo District Court about the allegations against Ghosn and Nissan.
“The Nissan brand was tarnished, the workers were demoralized, and trust for management has been lost,” he said.
Uchida said an atmosphere of fear prevailed at the company, with staff believing that challenging Ghosn carried serious risks.
“We were only trying to play melodies that sounded good to our boss,” he said. “I’ve been working to try to change that since becoming CEO.”
Ghosn was sent to Nissan by its French alliance partner Renault about two decades ago, helping to revive a company on the brink of bankruptcy. From about 2014, he became less collaborative and the company began to chase sales volume, setting overly ambitious goals, Uchida said.
Uchida’s predecessor, Hiroto Saikawa, resigned after he became embroiled in a scandal of his own, also related to under reported compensation. Saikawa has not been charged.
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