TOKYO Dec 14 Nissan Motor Co Ltd and
Renault SA CEO Carlos Ghosn is set to receive a third
salary after Nissan-controlled Mitsubishi Motors Corp
on Wednesday approved the Frenchman as its chairman along with a
tripling in compensation for board members.
Shareholders voted in favour of raising the ceiling on
combined annual compensation for Mitsubishi's 11 internal and
external directors to 3 billion yen ($26.06 million), including
2 billion yen in salary and 1 billion yen in stock options.
Mitsubishi has revamped top management and appointed Ghosn
to head its 11-member board after Nissan in October took a 34
percent controlling stake in Japan's sixth-largest automaker,
which is struggling to recover from a mileage-cheating scandal.
At a special shareholders meeting, some raised concerns
about bumping up executive pay while Mitsubishi was on track to
post an annual net loss after it overstated the fuel economy on
many of its domestic models.
"We didn't think it was appropriate to reduce compensation
while prioritising the company's recovery," CEO Osamu Masuko
The automaker said it was increasing its top-level pay
scheme to incentivise executives to improve the company's
management and attract talent.
"Compensation (excluding stock options) will not be doubled
if we don't return to the black next year, for example. Because
compensation will be merit-based, if our performance is not
good, director salaries will reflect that," he said.
Mitsubishi now has the firepower to raise compensation after
paying its previous board of 10 directors 423 million yen in the
year ended March, below the maximum 960 million yen previously
set aside for such compensation.
The company has yet to determine salary and benefits for
Ghosn, and a breakdown of Wednesday's voting was not immediately
As the head of the Renault-Nissan automaker alliance, Ghosn
received combined compensation of around $17 million in 2015
despite a vote by Renault shareholders against his pay package
of 7.2 million euros ($7.65 million) earlier this year.
Executive pay is a major political issue in France, whose
government commands more than 18 percent of voting rights in
Renault. Ghosn last month told Reuters he expects the government
to oppose his pay package in 2017.
Ghosn is already among the top-paid executives in the auto
industry, which also include General Motors CEO Mary Barra, who
received a combined $28.6 million in salary and perks last year,
and Ford CEO Mark Fields, who was paid a total of $18.6 million.
($1 = 115.1100 yen)
($1 = 0.9407 euros)
(Reporting by Maki Shiraki and Naomi Tajitsu; Editing by