Nissan Motor Company awards former Chief Operating Officer Ashwani Gupta $3.7 million in compensation for his abrupt resignation last year, according to a notice for its annual general meeting.
Nissan stated in the notice that it had given 582 million yen ($3.7 million) to a senior officer who resigned his post during the fiscal year 2023. According to a corporate representative, Gupta was the only executive who left during that time period.
image credit: Nissan
In May last year, Japan’s third-largest automaker said that Gupta, who had been chief operating officer since 2019 and was widely seen as a front-runner for the future CEO, would not be reappointed to the board.
Separately, Nissan CEO Makoto Uchida announced at a news conference on Friday that he would return 30% of his income for three months beginning in April, following a warning from Japan’s fair trade authority that the automaker had underpaid suppliers.
image credit: Nissan
In March, the watchdog accused Nissan of breaking Japan’s Subcontractor Law by underpaying 36 suppliers by around 3 billion yen over a two-year period beginning in January 2021.
Nissan stated at the time that it had fully reimbursed suppliers for money it had unilaterally deducted. It also established a section under the CEO to collect feedback from suppliers and an external hotline for connected issues, it announced on Friday.
The Subcontractor Law prevents the ordering party from unilaterally decreasing payment where the subcontractor is not at fault.
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