Nissan Motor is now embroiled in another scandal over executive pay after chief executive Hiroto Saikawa reportedly admitted to being overpaid in violation of internal procedures under a scheme designed by ousted chairman Carlos Ghosn.
An internal investigation found that Saikawa and other executives had received improper compensation, a source told the Reuters news agency, raising doubts about Saikawa's pledge to improve governance in the wake of Ghosn's arrest last year for alleged financial misconduct.
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Saikawa apologised and vowed to return any improperly paid funds as he admitted to Japanese reporters earlier on Thursday that he had wrongly received stock-related compensation under "a scheme of the Ghosn era".
"I am deeply sorry for causing concern," Reuters reported Saikawa as saying, citing Jiji Press.
In other comments Reuters said were reported by Kyodo News, Saikawa denied any direct role in the execution of a stock appreciation rights (SAR) scheme and said he thought "proper procedures" had been taken.
The improper payments, including tens of millions of yen Saikawa received through the SAR scheme, were disclosed on Wednesday at a meeting of Nissan's audit committee, Reuters' anonymous source said.
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By GlobalDataDisciplinary action regarding the issue would be discussed at an upcoming board meeting, the source added.
Nissan said in a statement cited by Reuters the findings from its probe including issues related to the share appreciation rights would be submitted to its board on 9 September.
Ghosn is awaiting trial in Japan over charges including enriching himself at a cost of US$5m to Nissan. According to Reuters, Kyodo reported that proceedings could start as early as March.
The report noted confidence in Saikawa had already been shaken by accusations he was too close to Ghosn, whose arrest in November rocked the global auto industry and exposed tensions in the alliance between Nissan and Renault.
The company launched its internal investigation after Japanese magazine Bungei Shunju in June published accusations by former director Greg Kelly Saikawa was granted an exception in 2013 to reschedule a stock linked bonus that increased the payout by JPY47m ($445,962).
Like Ghosn, Kelly is awaiting trial on charges of financial misconduct which he denies.
Renault spokesman Frederic Texier declined to comment to Reuters on the issue on Thursday. But a source told the news agency Renault would "respect Nissan's governance" and leave the board to consider its response.
