Tokyo – Four former top executives of Nissan Motor Co., including ex-CEO Makoto Uchida, received a combined ¥646 million ($4.5 million) in severance pay, according to a recent shareholders’ meeting notice. This revelation comes as the automaker faces a net loss of ¥670.9 billion for the fiscal year ending March and plans massive cost-cutting, including the layoff of 20,000 employees and the closure of 7 out of its 17 global vehicle plants.
The payouts are likely to face investor criticism at the upcoming June 24 shareholders’ meeting, especially following Uchida’s resignation in March after failed merger talks with Honda. The other recipients were former executives Asako Hoshino, Kunio Nakaguro, and Hideyuki Sakamoto. Uchida and Sakamoto remain on the board until the meeting concludes.
Under new President and CEO Ivan Espinosa, who took over in April, Nissan is accelerating restructuring efforts to return to profitability. The company has been hit hard by declining vehicle sales in key markets like China and the U.S., prompting a broader push to streamline operations and improve financial health.
Source – Mainichi Japan