Dismissal? Resignation? Why did the president quit September 13, 20:16

Wasn't it actually a dismissal? When Nissan President Hayato Nishikawa appeared in the press conference hall that was set up quickly, we thought so. Mr. Nishikawa said “resignation in the middle of the road”. I felt regret. It was April 2017 that he assumed office as former president under Ghosn. Then two and a half years. Resigned on September 16th. Ironically, he was forced to resign to a director who was gathered as a management reform that had been promoted as “the greatest mission”. When interviewed, it was found that the “resignation drama” was inevitable as a result of efforts to strengthen governance (corporate governance). It approached the movement of the parties. (Nissan Interview Team)

Unexpected resignation request

“It is the earliest timing in terms of where I should take responsibility.”

On September 9, 9:40 pm, Nissan headquarters in Yokohama. After the resignation was announced, Mr. Nishikawa showed himself up at the conference hall. Just an hour after the decision to resign. He told us that he accepted his resignation earlier than expected with his usual indifferent expression.

On the morning of this day, Mr. Nishikawa denied some reports that he himself told his resignation. "I'm surprised. I can't tell where it came from." In fact, even when the interviews were combined, at this point he did not expect him to be immediately resigned at the board of directors.

“The right time”

Mr. Nishikawa originally suggested his intention to withdraw if he was able to make a path to management reforms and the recovery of his business performance after the former President Ghosn's case. However, at the financial results meeting in May, he says, “I will baton the successor at the right time” and is willing to take charge of management for the time being.

On the other hand, inside the company, there was a voice asking Mr. Nishikawa, who was said to be the right arm of former Ghosn's chairman, about his responsibility as a member of the management team who missed fraud. Confrontation continues over management leadership with Renault, a federation, and the relationship deteriorates. The performance has been sluggish due to sluggish sales in the main market in the United States, so as to overtake, and some executives are dissatisfied with the attitude that Mr. Nishikawa decides things with only a limited number of people I can hear it. Voices that questioned the skills of top management began to smolder.

And June. Former President Kelly, who was prosecuted with former Chairman Ghosn, received an unfavorable 47 million yen remuneration over a remuneration called “SAR” (Stock Appreciation Right) that changes the amount in line with Nissan's stock price. Probably in a monthly magazine interview. Mr. Nishikawa, who pursued a huge amount of illegal compensation by former Ghosn, raised a suspicion about the reward.

The disturbance on the eve of the shareholders

“If someone suspected of fraud continues to be at the top, trust will be lost.”

On June 24, the day before the general meeting of shareholders, one of the directors moves. In order to urge Mr. Nishikawa to resign, he called for an extraordinary board of directors. According to officials, Mr. Nishikawa and the board of directors had a fairly tense discussion about whether it was held or not. However, because of the day before the general meeting, support did not spread among other directors, and in the end, the extraordinary board of directors was not realized.

At the next day's general meeting of shareholders, it will be decided to move to a “company with a nominating committee”. In order to renew the system in which authority was concentrated on former Ghosn and others, a majority of directors became outside directors, and personnel and compensation were decided mainly by outside directors. Nishikawa's president's continued investment has been officially decided, but this governance reform to improve management transparency will lead to the resignation of President Nishikawa.

Increasing pressure to resign

September. Allegations over Nishikawa's remuneration resulted in the results of an internal survey. While it was not considered a violation of the law, the fact that it was receiving a lot of remuneration in a form contrary to internal rules was recognized.

The Board of Directors meeting will be officially reported on September 9th. The executives who have worked with Mr. Nishikawa for many years will speak up ahead of time. "I don't have it as it is. I should resign immediately." The pressure to resign was definitely increasing.

Unanimous resignation request

The day of the board meeting. According to those involved, the scenario of “resign immediately” was not in place. Some directors said they had a plan to move to the next system “within the year” or “within the year”.

At the board meeting from 3:00 pm, the final report of the in-house investigation on the misconduct of former Chairman Ghosn was first made. After that, the survey results on Mr. Nishikawa's compensation will be reported.

“Nissan will not change if fraud is allowed,” “Nishikawa's centripetal force will inevitably decline due to remuneration issues,” “Nissan's reform will not proceed without bullying.” A sense of crisis spreads among directors.

Some directors said they were cautious about their immediate resignation because it took time to choose a successor. However, after five hours of discussion, it was finally decided to ask Mr. Nishikawa to resign as soon as the board of directors agreed.

Mr. Nishikawa has quietly accepted a request that can be said to be a "de facto dismissal." One Nissan executive said, “I wanted to reinvent the brand that was damaged, and I wanted to ensure governance.”

Two-stage press conference

Yasushi Kimura, an outside director who chaired the board of directors at the press conference on the night of the 9th, said that the end of the internal investigation on fraud was one of the breakthroughs. I decided that changing the top was appropriate for a new leader. " “Exercise governance” by moving to a management system centered on outside directors.

Later, Mr. Nishikawa said at a press conference that he was alone, “Unfortunately, it was a time when the past sea breaches such as the Gone incident and sluggish performance. I wanted to organize everything and hand it over to the next generation. I ’m very sorry for that, I ’d like you to allow me to touch the baton halfway. ” While speaking intimately, there were remarks that made him feel uneasy about being out of the top of management in the process of reform.

Newborn and Nissan steering

In the selection of the successor to be the focus, candidates are narrowed down to about 10 people from inside and outside the company. The next top will face the remaining big “homework”, with the recovery of the stagnant business performance, the building of a deteriorating relationship of trust with Renault in the alliance, and the management reform to increase transparency.

The fact that Nissan Motor had to spend time in a period of drastic change in the automobile industry, said once in 100 years, to confuse management for nearly a year after former Ghosn ’s case, heavy. The remaining time is not so long for Nissan to be reborn in a true sense.