Nissan boss Uchida, board members receive shareholders backing despite surveillance allegations

Japanese automaker Nissan’s shareholders on Tuesday re-elected its chief executive and other board nominees, days after reports emerged of a major fissure within the top hierarchy of the company and allegations of corporate surveillance.

At the first annual meeting since reaching a new deal with alliance partner Renault, Chief Executive Makoto Uchida and 10 other nominees of the board received the full support of the shareholders. 

The surveillance controversy 

Uchida receiving the long rope comes despite allegations of him carrying out surveillance against his deputy, Ashwani Gupta surfaced in April, earlier this year. Reportedly, Hari Nada, a senior adviser at Nissan wrote a letter to the independent directors on the Japanese automaker’s board, revealing the surveillance saga. 

In the letter, Nada said Uchida carried out surveillance over a long period in an attempt to acquire leverage to remove an executive and board member that he regarded as an obstacle to reaching a new deal with alliance partner Renault. Last week, the company formally launched an investigation into the matter, according to a Reuters report. 

Gupta attended the Tuesday meeting which, incidentally was his last day at the company. His departure was announced last week and the company did not name a new COO to replace him while unveiling the executive line-up. 

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Despite the events leading up to the meeting, no question regarding surveillance accusations was posed by the shareholders to the top Nissan executives. Only Gupta was asked about his time at the company, to which he preferred to give no answer. Uchida stepped in and said the executive had contributed greatly to projects starting with the formulation of a mid-term plan.

According to reports, Gupta had reservations about the new deal with Renault, the final terms of which are yet to be announced. 

Nissan’s troubles 

Earlier this month, former Nissan chairman Carlos Ghosn filed a lawsuit in Lebanon against Nissan, demanding over $1 billion. In the lawsuit, Ghosn claimed that Nissan fabricated the charges against him, leading to his arrest and prosecution. 

Ghosn, the former chairman and chief executive of the Renault-Nissan-Mitsubishi alliance, was arrested in 2018 on suspicion of financial misconduct before he was sacked by the automaker’s board in a unanimous decision. In 2019, he jumped bail and escaped from Japan hidden in an audio-equipment box. He then landed in Beirut where he remains an international fugitive.

(With inputs from agencies)