[UPDATE]: Nissan has issued an official press release confirming the reports and saying an internal investigation within the company has been conducted over the past several months. The investigation revealed that "over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation."
The automaker has also confirmed that "numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly's deep involvement has also been confirmed."
Check out the press release section below for more details.
Japan’s Yomiuri newspaper reports that Renault-Nissan CEO Carlos Ghosn has been arrested in Japan last evening for violating the country’s financial laws. The information was brought to our attention by Automotive News, but no other local media is confirming the report, so the situation is not entirely clear at the moment.
Ghosn is one of the highest-paid executives, if not the highest-paid, in Japan, but is believed to have under-reported his incomes over the last couple of years by millions of dollars and used corporate assets for personal use. It is expected that Nissan will fire him in the next few days together with board member Greg Kelly, who is reported to be “deeply involved” in the scheme.
Whether that’s going to happen or not remains questionable at the moment, but reports suggest that Nissan CEO, Hiroto Saikawa, will recommend to the board of directors that Ghosn will be fired. The Japanese automaker is not willing to discuss the matter at this point.
One of the modern automotive industry’s heroes, Ghosn is a controversial figure in Japan mainly because of his outsized salary. It was expected that he will retire as chairman of the French-Japanese alliance in the next couple of years, but not before finalizing the process of restructuring the company.
Source: Yomiuri via Automotive News
YOKOHAMA, Japan – Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company's Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.
The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation.
Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly's deep involvement has also been confirmed.
Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.
As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan's Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director. Saikawa will also propose the removal of Greg Kelly from his position as Representative Director.
Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.