Nissan CEO returns part of his salary after inspection scandal

Nissan president and chief executive officer Hiroto Saikawa said he has been returning part of his monthly pay since October. (AFP)
Updated 17 November 2017
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Nissan CEO returns part of his salary after inspection scandal

YOKOHAMA, Japan: The CEO of Japanese car giant Nissan said Friday he will return part of his pay until next March following a damaging inspection scandal.
Nissan recalled some 1.2 million vehicles after admitting in October that staff without proper authorization had conducted final inspections on some vehicles intended for the domestic market before they were shipped to dealers.
The firm suspended all production destined for the local market last month, but resumed production last week at all plants.
“I have been returning part of my monthly pay since October,” Nissan president and chief executive officer Hiroto Saikawa told reporters on Friday.
Saikawa, who took over the top position from Carlos Ghosn earlier this year, said he would continue doing so until the end of March 2018.
“I’m doing this on a voluntary basis,” he said, adding that he “understands” that other executives have been doing the same.
Details of the executives’ salaries were not immediately available.
Nissan also submitted the results of a probe into the scandal to the transport ministry.
The report acknowledged that improper inspections became “the norm by the 1990s at many of the plants,” adding that misconduct may have been carried out since 1979 at one plant.
The probe also showed that the plants were short of final inspection staff and employees were not sufficiently aware of the importance of the inspections.
As a preventive step, the firm has installed a special security gate through which staff qualified to carry out final inspections enter the plants.
It will also introduce a face-recognition system by March 2018.
The automaker produced 1.015 million vehicles in Japan in its last fiscal year to March, with about 400,000 units sold locally.
The scandal made a large dent in its car sales last month, which plummeted more than 55 percent year-on-year.
Nissan last week downgraded its annual operating profit forecast to ¥645 billion for the year to March from ¥685 billion.


Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018
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Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.