Ghosn's insatiable greed: How much will he receive from Mitsubishi Motors?

Updated : 14.11.2016 / Category Capsule

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Carlos Ghosn, president and chief executive officer of Nissan Motor Corp., is set to become chairman of Mitsubishi Motors Corp. following endorsement by Mitsubishi shareholders at an extraordinary meeting in December.

But at Mitsubishi, which was recently buffeted by a bogus gas-mileage data scandal, employees are skeptical and resentful regarding the appointment. "What's going to change after his appointment?" said a high-ranking Mitsubishi insider. "Mr. Ghosn is the only person who'll benefit."

Nissan's equity ratio in Mitsubishi stands at a little over one-third, so there is no necessity for him to assume the chairmanship. But Mitsubishi employees' resentment is justifiable in that Ghosn has asked Mitsubishi Chairman and President Osamu Mashiko to stay on as president, in spite of the fact the scandal occurred under his watch.

Until recently, Ghosn, who also serves as chairman and chief executive officer of French automaker Renault, held the chairman's position at yet another automaker: Russia's top car manufacturer, Avtovaz. After a 2012 announcement saying it would buy the Russian firm for $750 million, the Renault-Nissan alliance acquired more than half the firm's shares in 2014 to gain overall control. Ghosn held the chairmanship from June 2013 to June 2016.

In fiscal 2015, Ghosn's Nissan salary increased year-on-year by ¥36 million to ¥1.07 billion. In the 2015 calendar, he received about ¥840 million from Renault. His salary from Avtovaz was not made public, but any losses associated with leaving the post will be amply covered by the salary he will get from Mitsubishi.

The embattled automaker's top leader will likely be the only member of staff happy with his earnings.

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This is a translation of an article from the November 2016 issue of Sentaku.