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Nissan Probe Turns Up Exec Overpayments

Nissan Motor Co. overpaid several of its senior executives by hundreds of thousands of dollars in a compensation plan indexed to the company’s share price, sources tell the Financial Times.
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Nissan Motor Co. overpaid several of its senior executives by hundreds of thousands of dollars in a compensation plan indexed to the company’s share price, sources tell the Financial Times.

The revelation is part of a 10-month probe into Nissan’s governance and finances that was triggered by Ghosn’s arrest last November on suspicion of financial wrongdoing.

A final report on the investigation is expected to be presented to the carmaker’s board of directors on Sept. 9, FT says.

The payments don’t appear illegal but were part of a compensation plan that was “different to what it should have been,” CEO Hiroto Saikawa tells reporters. He describes the scheme as one among many “from the Ghosn era.”

The payments were made to Saikawa, then-chairman Carlos Ghosn and unspecified others, FT says. Saikawa denies asking for extra compensation and has pledged to return any excess funds, pending a company ruling on the policy.

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