Ousted Nissan chairman Carlos Ghosn had too much power, report finds
Former Nissan chairman Carlos Ghosn had too much power and was able to hide his misconduct through an “opaque” management system, an explosive report has found.
The independent report into Nissan’s governance, commissioned after Ghosn’s dramatic ousting, states the executive built up too much authority and created a “top-down” corporate culture that left employees powerless to challenge him.
Read more: Nissan and Mitsubishi executives step down in wake of Ghosn scandal
“The Special Committee for Improving Governance (SCIG) has found that the primary root cause of the misconduct was the concentration of all authority in Mr Ghosn, including those regarding human affairs and compensation issues,” the report states.
The committee described a “personality cult” surrounding Ghosn, who was arrested last year on charges including underreporting his salary and transferring personal losses to Nissan.
Power in the firm was concentrated in Ghosn and a few individuals, including director Greg Kelly, who has also been indicted by Japanese authorities for his role in the scandal, according to the report.
“As a result, the checks and balances function of certain administrative departments did not necessarily function effectively with respect to the problem concerning Mr Ghosn’s demands for his personal gain,” it states.
The SCIG outlined 38 recommendations to improve Nissan’s governance, including that the majority of directors should be independent, outside directors and that the position of Nissan chairman should be abolished.
In addition, it said Nissan’s representative executive officer should not also hold senior positions at Renault and Mitsubishi.
The findings of the three-month audit will create added strain on the alliance between the three car manufacturers.
Read more: Tokyo court blocks Ghosn’s request to attend Nissan board meeting
The alliance has already announced an overhaul of its senior management in a bid to dismantle the leadership team built under Ghosn.
Renault chairman Jean-Dominique Senard has been selected to lead a new committee set up to encourage cooperation between the firms.