Carlos Ghosn, Chairman of Nissan & Renault arrested over 'corruption charges'

November 19, 2018:

On Monday, Nissan Motor Co Ltd terminated Carlos Ghosn from his Chairman's post after finding that he had used company's money for personal purpose & committed many other serious acts of misconduct.

It said that based on a whistleblower's report, it had been investigating possible improper practices of Ghosn & Representative Director Greg Kelly for several months, and that it was fully cooperating with investigators.

Nissan stated, "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."

It added that CEO Hiroto Saikawa would propose to the Nissan board to remove Ghosn & Kelly.

Ghosn had been arrested by Tokyo prosecutors on suspicion of under-reporting his salary and was also being questioned.

Nissan said it would brief reporters on Monday evening.

Spokesmen for Renault & the Renault-Nissan-Mitsubishi Motors alliance did not immediately return calls & messages seeking comment on the arrest reports.

An ouster of Ghosn, 64, is bound to raise questions about the future of the alliance that he personally shaped & had pledged to consolidate with a deeper tie-up, before eventually stepping back from its operational leadership.

Brazilian-born, of Lebanese descent and a French citizen, he began his career at Michelin in France, moving on to Renault. He joined Nissan in 1999 after Renault bought a controlling stake and became its CEO in 2001. Ghosn remained in that post till last year.

In June, Renault shareholders approved Ghosn's 7.4 million euro ($8.45 million) compensation for 2017. In addition to this, he received 9.2 million euros in his final year as Nissan chief executive.

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