Nissan's CEO is resigning after months of turmoil at the Japanese automaker

FILE PHOTO - Nissan CEO Hiroto Saikawa attends a news conference to release first quarter earnings at the company headquarters in Yokohama, Japan July 25, 2019.   REUTERS/Issei KatoFILE PHOTO - Nissan CEO Hiroto Saikawa attends a news conference in YokohamaReuters

  • Nissan's CEO is resigning, the Japanese automaker said Monday.
  • Hiroto Saikawa acknowledged last week that he took more equity-linked pay from the company than he was entitled to, Bloomberg reported, but said he was previously unaware of the overpayment.
  • Saikawa was the hand-picked successor to disgraced former chairman Carlos Ghosn, who is facing financial misconduct charges in Tokyo.
  • Visit Business Insider's homepage for more stories.

Hiroto Saikawa, Nissan's embattled chief executive, is resigning, the company said Monday, after it was revealed that he took more pay than he was entitled to.

His exit, effective September 16, comes after months of turmoil at the Japanese automaker following the arrest of its chairman Carlos Ghosn last year, who hand-picked Saikawa as his successor, Bloomberg News reported.

"Nissan's Nomination Committee will accelerate its efforts to select a successor for the CEO position, with the goal of concluding the search by the end of October," the company said in a press release. COO Yasuhiro Yamauchi will serve as interim CEO.

Nissan has also faced charges in the drama that has ensued since November, when Ghosn was arrested on accusations of illegal financial dealings. At the time, Ghosn was also serving as CEO of Renault and overseeing an alliance between the two companies and Mitsubishi.

In the months since, Nissan has announced it would slash 9% of its workforce amid falling profits. The Japanese automaker's operating profit tumbled to $15 million in the second quarter of 2019.

Shares of Nissan's stock rose about 2% in early trading Monday following the announcement of Saikawa's imminent departure.

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