Nissan Motor Co. is considering assigning two committee posts to its largest shareholder, Renault SA, under the new administration that will be organized after a shareholders meeting later this month.
Nissan originally planned to assign only one post to Renault but added one more. By doing so, Nissan has made a concession to Renault, which has expressed dissatisfaction with personnel management that will be in place after the administrative transition. The move is likely to ease Renault's opposition and pave the way for both sides to meet halfway over the plan for the new administration.
At its June 25 shareholders meeting, Nissan will submit a proposal to transform itself into a firm with a governance structure of nominating and other statutory committees, which clearly separate business execution and management oversight. Renault made clear its intent to abstain from voting due to its dissatisfaction with personnel management.
A company with statutory committees sets up three committees in the board of directors: an "appointment committee" for selecting candidates for the board of directors, a "compensation committee" for determining executive compensation and an "audit committee" for overseeing the directors' work.
Nissan only planned to appoint Renault Chairman Jean-Dominique Senard as a member of the appointment committee, but is now considering Renault Chief Executive Officer Thierry Bollore for membership in the audit committee.
Renault has been positive about Nissan's move and the two sides are expected to reach an agreement next week.
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