Key facts
- Nissan shareholders rejected the appointment of a key outside director.
- The rejected director was slated to chair the company's audit committee.
- Major shareholder Renault abstained from voting on the director's appointment.
- Outside directors are responsible for evaluating management and compensation.
- Nissan replaced its CEO following a significant financial loss.
Nissan Motor shareholders on Tuesday rejected the appointment of a key outside director, who serves as the chair of the company's audit committee. The decision comes as scrutiny over the automaker's governance persists, with major shareholder Renault indicating it would abstain from voting on the director.
Outside directors at Nissan, which operates under a nomination committee structure, are primarily responsible for evaluating management and influencing compensation. Recent leadership changes, including the replacement of the CEO following a loss exceeding 670 billion yen, highlight the board's role in overseeing management transitions. Directors have noted their efforts to monitor management plans, challenge performance issues, and ensure appropriate structural reforms are implemented.
In preparation for the annual general meeting of shareholders, Nissan's Nomination Committee had selected candidates for its board. Among those proposed for re-appointment were Bernard Delmas, who was also nominated as lead independent outside director, and Motoo Nagai, who was proposed as the chair of the audit committee. Akiyoshi Koji was nominated as a new outside director and proposed to become board chair.