Nissan CEO Criticizes Renault for Not Supporting Proposed Board Changes
10 Juin 2019 - 11:23AM
Dow Jones News
By Peter Landers
TOKYO--Nissan Motor Co. Chief Executive Hiroto Saikawa, in an
unusual criticism of his French partners, said it was "most
regrettable" that Renault SA was refusing to support his proposed
governance changes at Nissan.
In a statement Monday, Mr. Saikawa confirmed reports over the
weekend that Renault sent him a letter indicating it intended to
abstain at Nissan's shareholder meeting on June 25 in a vote on the
proposed changes. Nissan has asked shareholders at the meeting to
establish board committees on nomination, compensation and audit,
part of governance changes adopted after its ouster of former
Chairman Carlos Ghosn.
In the letter, Renault Chairman Jean-Dominique Senard wrote that
the governance changes "should not serve as a tool directed or used
against Nissan's largest shareholder," according to people familiar
with its contents. Renault is Nissan's largest shareholder, with a
43.4% stake.
"This transition was discussed thoroughly by Nissan's board and
approved by all board members, including Renault's own nominees,"
Mr. Saikawa said. "Nissan finds Renault's new stance on this matter
most regrettable, as such a stance runs counter to the company's
efforts to improve its corporate governance."
It is rare for Nissan to issue statements in Mr. Saikawa's name,
and he has typically avoided direct criticism of his partners at
Renault.
At the shareholder meeting, votes representing a majority of
Nissan shares must be cast on a proposal, or it doesn't get
decided. Two-thirds of those voting must approve for it to be
passed. If Renault carries through with its threat and some other
shareholders also abstain, the threshold for shareholder
participation wouldn't be met.
People close to Renault said Mr. Senard's letter was meant to
start a discussion with Nissan, not state a final position. In
particular, they said, Renault wants to discuss the composition and
powers of the new board committees and ensure they wouldn't be used
to dilute the French car maker's influence.
Renault and Nissan, partners for two decades, have been at odds
over several issues since the arrest in November of Mr. Ghosn, who
had led both car makers. He has been charged with several financial
crimes and says he is innocent. In April, Renault broached the idea
of a merger with Nissan, but Mr. Saikawa said it wasn't the right
time to discuss the idea.
Last week, Fiat Chrysler Automobiles NV withdrew a proposal to
merge with Renault after Mr. Saikawa expressed concerns that Nissan
wasn't consulted about the proposal and needed time to study
it.
Sean McLain and Nick Kostov contributed to this article.
Write to Peter Landers at peter.landers@wsj.com
(END) Dow Jones Newswires
June 10, 2019 05:08 ET (09:08 GMT)
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