6/14/2019

Report: Nissan Ready to Meet Renault’s Board Seat Demands

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Nissan Motor Co. is close to an agreement that would give Renault SA—its largest shareholder with a 43% stake—more clout over strategy and management, sources tell Bloomberg News.

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Nissan Motor Co. is close to an agreement that would give Renault SA—its largest shareholder with a 43% stake—more clout over strategy and management, sources tell Bloomberg News.

Nissan aims to reform its executive oversight with the help of new committees for audit, compensation and leadership selection. Renault said last week that it would abstain from a vote on the plan, thereby blocking the measure, unless it gets a seat on two of the panels.

Renault Chairman Jean-Dominique Senard and CEO Thierry Bollore already hold board seats at Nissan. But Nissan initially proposed to give Renault only one seat on one of the three new committees. Senard objected, pointing out that Nissan’s 15% stake in Renault gives it two seats on the French carmaker’s board committees.

Bloomberg says the companies appear likely to reach an agreement before Nissan’s oversight reforms are put before its shareholders on June 25.