Business

Mitsubishi wants to triple executives' annual pay

Firm is preparing for the appointment of Carlos Ghosn as chairman Image copyright Getty Images
Image caption Mitsubishi proposes new salary caps

Mitsubishi Motors is proposing higher salary caps that could triple the annual pay packages of its top executives.

The new limits come as the scandal-hit Japanese carmaker prepares to appoint Carlos Ghosn as chairman.

The firm wants to raise the cash limit on executive pay from 960m yen (£6.7m, $8.4m) to 2bn yen. There could also be non-cash rewards worth 1bn yen.

The new salary caps need approval by shareholders.

They are due to vote on that at an extraordinary meeting on 14 December.

Shareholders will also be asked to approve the appointment of Nissan and Renault boss Carlos Ghosn as chairman, and three other new executives with experience at Nissan.

If approved, the total annual pay packages of all 11 executives on the company's new board could amount to 3bn yen.

Image copyright Getty Images
Image caption Mitsubishi Motors' sales have fallen since its emissions scandal

New talent

Mitsubishi Motors says the new salary caps are designed to attract outside talent to the company.

Its reputation was hit badly after it admitted in April to falsifying the fuel efficiency of several models.

The admission led to a suspension of sales of the vehicles and prompted a sharp drop in Mitsubishi Motors' share price.

Mitsubishi has suffered heavy losses resulting from the scandal. It has forecast a net loss of 145bn yen for the current financial year.

In May, Nissan helped to bail out Mitsubishi Motors by taking a 34% stake in its smaller rival.

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