Sunday , January 24 2021

Carlos Gona's fall: even the biggest leaders need someone to stay away




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Carlos Gona's fall: even the biggest leaders need someone to stay away

The fall of Nissan President Carlos Gons shows that everyone should be controlled, even industry leaders, writes CNN.

The news that Carlos Gos can be removed from the management of Nissan and Renault on financial crimes, greatly reduced the share of both companies.

The Japanese authorities arrested Ghosn in Tokyo earlier this week, and Nissan announced that it plans to abandon it as its CEO after the violations revealed, including underreporting about $ 44 million in received payment packages. In the meantime, France has demanded the establishment of temporary management at Renault.

When managers get too much energy, responsibility often goes out of the equation. Lack of supervision can lead to fraud, as happened in the case of the collapse of Enron under Kenneth Lai.

Other important leaders, such as Dick Fuld of Lehman Brothers, allowed to take the irresponsible risk that led to the collapse of their companies. John Stumpf could not name Wells Fargo's toxic sales culture, and Jeff Immelt made a number of inappropriate decisions that General Electric pursued.

“Controls are needed,” says Ralph Woekling, founder of the Gupta Institute for Corporate Governance at Drexel University.

“The power may ultimately deteriorate,” warns Bill Klepper, a professor at Columbia University.

Nissan recognized this problem. “Some things need to be corrected, such as superconcentration of power and corporate governance,” said Nissan CEO Hiroto Saikawa during a press conference.

The arrest in Ghosn has recently strengthened the trend towards changes in the upper part of the automotive sector, reports Chiefexecutive.net.

Some of the most important companies in the sector have undergone such changes in just a few months. For example, Herbert Diez was installed as head of Volkswagen last spring, taking the position of Matthias Muller in difficult conditions, and Rupert Stadler, head of the VW Audi division, was arrested in the Dieselgate scandal with the participation of the German automaker.

Also in the summer, Sergio Marchionne, CEO of Fiat Chrysler, died unexpectedly due to medical problems.


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