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a. In 2018, Carlos Ghosn, the chairperson of Nissan Motor Co., Ltd. (Nissan), was arrested for alleged misconduct and cr

Posted: Sun Jul 03, 2022 5:23 pm
by answerhappygod
A In 2018 Carlos Ghosn The Chairperson Of Nissan Motor Co Ltd Nissan Was Arrested For Alleged Misconduct And Cr 1
A In 2018 Carlos Ghosn The Chairperson Of Nissan Motor Co Ltd Nissan Was Arrested For Alleged Misconduct And Cr 1 (116.2 KiB) Viewed 13 times
Please solve all the questions, thank you.
a. In 2018, Carlos Ghosn, the chairperson of Nissan Motor Co., Ltd. (Nissan), was arrested for alleged misconduct and criminal offences related to underreporting remuneration and misrepresenting annual disclosures. Detailed investigations revealed similar misrepresentations by the company's chief executive officer (CEO) Hiroto Saikawa, who was forced to resign. The actions of senior officials left a deep stain on Nissan's reputation, causing investors to question the effect of corporate governance at Nissan-and by extension, at similar companies across Japan and the world. As details of the scandal unfolded, Nissan suffered negative public repercussions. Its share-based incentive systems, excessive focus on profitability, and cost-cutting measures had caused deviations from normal risk management procedures, resulting in the production of poor-quality vehicles and thus vehicle recalls. Consumer trust in the company dropped, as did sales and profitability figures, with a continuous fall in the company's stock. The company's new CEO and board of directors were left to make amends for the company's future. They needed to determine how to strengthen the company's leadership and governance structure as they worked to make Nissan sustainable and profitable once again. Identify TWO (2) corporate governance issues at Nissan Motor Co. Ltd. [5 marks] b. Describe how to minimize the occurrence of the above corporate governance issues by explaining ONE (1) of the available corporate governance models in terms of its application. [5 marks] In your opinion, what is the best board structure between unitary and two-tier boards to be implemented by the company's new CEO and board of directors? Kindly select only ONE (1) board structure and provide THREE (3) reasons to support your answer. [10 marks]