Report: Nissan to Drop Chairmanship, Add Outside Board Members

March 18, 2019 at 2:53 PM

Nissan Motor Co. aims to eliminate its chairman position, add three outside directors to its board and set up several special oversight committees, according to The Nikkei.

The newspaper says Nissan’s governance reform committee will present its recommendations on March 27. The overhaul was prompted by concerns that too much power had been concentrated in the hands of ex-Chairman Carlos Ghosn, after he was indicted in December and January on multiple counts of financial misconduct.

The proposals also will urge Nissan to allow an outside director run board meetings, add enough outside directors to give them a majority on the board, and set up standing committees to monitor appointments, oversight and compensation.

The report will not delve into the capital structure of the Renault-Nissan alliance, which will turn 20 years old on March 27, according to The Nikkei.