Nissan paid CEO Carlos Ghosn $10 million in last fiscal year

Article by Anita Panait, on June 25, 2013

Carlos Ghosn received a total of JPY988 million ($10 million) in salary and bonuses for his role as chief executive of Japanese carmaker Nissan for the fiscal year ended March 31, 2013. Ghosn's pay for the previous fiscal year reflects a 0.1 percent rise, which came on heels of the carmaker's performance during the period when its operating profit margin dropped to 5.4 percent.

Ghosn's compensation places him on track to be among the highest-paid executives in Japan. In comparison, Toyota president Akio Toyoda received JPY184 million ($1.9 million) while Honda president Takanobu Ito got JPY145 million for the fiscal year ended March 2013.

Nissan, however, noted that Ghosn's pay is lower than the industry average. Nissan, citing estimates at consultant Towers Watson & Co., said that comparable global carmakers paid their CEOs an average of $15.3 million in 2012.

Here are some numbers for other CEOs: Ford's Alan Mulally received $21 million in 2012 while Volkswagen Group's Martin Winterkorn got EUR14.5 million ($19 million) in the same year.

Takashi Aoki, a fund manager at Mizuho Asset Management Co., remarked that Ghosn's pay should reflect Nissan's business performance in the previous fiscal year.

He noted there have been issues with new models in the United States that affected profit, which means management has to take responsibility. In the fiscal year ended March 2013, Nissan posted a 0.3-percent rise in net income to JPy342.4 billion, which is around 64 percent less than Toyota's and 7 percent below Honda.

For this year, Nissan is expecting its profits to surge 23 percent to JPY420 billion. Analysts, however, is expecting the carmaker to surpass its own numbers, according to data compiled by Bloomberg. [source: automotive news - sub. required]

Topics: nissan, ceo, carlos ghosn

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