Nissan's Ghosn to be arrested in Japan for under-reporting salary

Marco Green
November 19, 2018

The Japanese carmaker had been investigating possible improper practices of Carlos Ghosn.

Prosecutors were moving toward arresting Mr Ghosn on Monday on suspicion of under-reporting his corporate salary, according to Japanese newspaper Asahi.

Shares of Japan's fourth-largest vehicle manufacturer as well as France's Renault plunged following a report that Carlos Ghosn, chairman and chief executive of the Renault-Nissan-Mitsubishi alliance, will be arrested on alleged violations of financial trading law and the company board will consider his ouster, according to Japanese media.

Hiroto Saikawa, the chief executive and only remaining survivor of the firm's top three executives, will propose to the board that Ghosn and Kelly be dismissed, citing "clear violations of the duty of care as directors".

Another report by Nikkei Asia revealed on Monday that the company it had been conducting an internal investigation into misconduct involving Ghosn and another "representative director" Greg Kelly for several months.

Carlos Ghosn arrested; Nissan likely to sack him
Carlos Ghosn to be arrested in Japan on suspected financial law breach, removed as Nissan chairman

The firm said it had been providing information to the Japanese Public Prosecutors Office and would continue to do so. Spokesmen for Renault and the Renault-Nissan-Mitsubishi Motors (7211.T) alliance did not immediately return calls and messages seeking comment. The value of Nissan securities listed in Germany fell by 12%.

Brazilian-born, of Lebanese descent and a French citizen, he began his career at Michelin in France, moving on to Renault.

He became Renault's CEO in 2005, pressing for further streamlining through joint procurement and development under the Nissan-Renault alliance. The investigation, prompted by a whistleblower report, had shown that "over many years" both Ghosn and Kelly had been under-reporting compensation to reduce the chairman's disclosed pay.

In June, Renault shareholders approved Ghosn's 7.4 million euro ($8.45 million) compensation for 2017.

Other reports by Click Lancashire

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