Everyone has good days, and bad days. On your bad days, did anyone try to boot you from your job and suggest you take advice from a fugitive? That’s what current Nissan CEO Ivan Espinosa faced today during the company’s 127th shareholders meeting, held at Nissan’s headquarters in Yokohama, Japan. After the meeting, we can’t help wondering if he considered hiding in a big musical instrument box to escape the crowds.
So, what exactly happened? Those of us with a beat on the auto industry know that annual shareholder meetings are largely cut-and-dry, packed with some financial speak and a series of proposals that shareholders can vote on. It’s rare that things ever really step out of line, but Nissan has had it rough in recent years, and investors are speaking out. In what Automotive News calls a raucous meeting, one person even called for Nissan’s notorious former CEO Carlos Ghosn to join the company’s board of directors.
Considering Ghosn fled Japan a few years back and is still a wanted criminal there, that would make board meetings even more awkward than they already are. Let’s take a closer look at what went down today.
A Tough Room From The Start
As previously stated, shareholder meetings are usually pretty sleepy. But before Espinosa even kicked things off, there was a no-confidence vote called by a shareholder, directed at the CEO and last year’s meeting which also wasn’t exactly roses. Espinosa is still the CEO of Nissan, so you can guess how that went.
But then came the criticism. People harped on how things are voted on, complained about stock prices, voiced concerns over proposals, complained about stock prices, spoke out against board nominees, complained about stock prices… you probably see where this is going. It’s true that Nissan stock hasn’t done well in recent years, long before Espinosa was in charge. For better or worse, Nissan stock was indeed stronger in the Ghosn era, which is apparently why one shareholder called for Ghosn’s return to Nissan’s board.
“We need a person like Carlos Ghosn. He had bad aspects, but he had good aspects as well,” said one investor, according to Automotive News. “I want such a leader.”
Ghosn’s Story In A Nutshell
To refresh everyone’s memory, Ghosn was arrested back in 2018 on alleged financial misconduct charges. Prior to that, Nissan was moving along reasonably well. He maintained his innocence and claimed the charges were an attempt by other Nissan executives and Japanese officials to oust him from the company. He famously fled house arrest by hiding in a musical instrument box and was literally smuggled out of the country to Lebanon.
How far has Nissan stock slid? Compared to the financials shortly before Ghosn’s arrest, it’s down approximately 66%. That’s a decidedly hefty drop, and they’re slipping again as Espinosa tries to turn things around. Shareholder angst, frankly, is understandable.
Read the full article on CarBuzz
This article originally appeared on CarBuzz and is republished here with permission.
Read the full article here