Nissan Stood Out for Bad Governance Structures, Jefferies' Khan Says

The transcript discusses Nissan's governance issues, highlighting its lack of independent directors and poor governance structures compared to other Japanese companies. It explores the broader context of corporate governance in Japan, noting that while some companies are improving, others like Nissan, Toshiba, and Olympus face significant challenges. The importance of shareholder alignment and board member share ownership is emphasized as a key factor in good governance. The potential for Nissan's turnaround is considered, with the formation of governance committees and the selection of qualified independent directors as positive steps.

What was a significant governance issue at Nissan compared to other large global companies?

• Lack of independent directors

• Having too many independent directors

• High shareholder alignment

• Excessive board committees

What percentage of Japanese companies are proactive in improving governance?

• 10%

• 20%

• 50%

• 30%

Which factor is most correlated with good governance according to the research?

• Board members owning shares

• High CEO compensation

• Frequent board meetings

• Large board size

What is a common trait among scandal-hit companies regarding shareholder alignment?

• No independent directors

• Low shareholder alignment

• Excessive board committees

• High shareholder alignment

What recent step has Nissan taken to improve its governance?

• Increased CEO compensation

• Formed a committee on Governance and Director Pay

• Merged with another company

• Reduced the number of board members

What was notable about the new independent directors added by Nissan?

• They had no business background

• They were from competing companies

• They were all financial experts

• They were all former Nissan employees

What is a key challenge for Nissan in ensuring effective governance?

• Decreasing CEO compensation

• Reducing the number of board meetings

• Increasing the number of board members

• Ensuring proper incentive structures