Nissan chairman Ghosn to be sacked for misconduct, Latest Business News - The New Paper

Nissan chairman Ghosn to be sacked for misconduct

This article is more than 12 months old

TOKYO: Nissan Motor Co Ltd said yesterday it was moving to terminate Mr Carlos Ghosn from his chairman's post after finding that he had used company money for personal use and committed several other serious acts of misconduct.

The Japanese carmaker said that based on a whistleblower report, it had been investigating possible improper practices of Mr Ghosn and Representative Director Greg Kelly for several months, and that it was fully cooperating with investigators.

"The investigation showed that over many years both Mr Ghosn and Mr 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 Mr Carlos Ghosn's compensation," Nissan said in a statement.

It said CEO Hiroto Saikawa would propose to the Nissan board to remove Mr Ghosn and Mr Kelly. The Yomiuri newspaper reported that Mr Ghosn had been arrested by Tokyo prosecutors on suspicion of under-reporting his salary. Earlier, several outlets had reported he was being questioned.

The news comes as a shock in Japan where Mr Ghosn, a rare foreign top executive, is well regarded for having turned Nissan around from near bankruptcy. Mr Ghosn is also chairman and chief executive of France's Renault.

The Asahi newspaper reported on its website that prosecutors had begun searching the offices of Nissan's headquarters and other locations yesterday evening. The Tokyo District Public Prosecutors Office declined comment. - REUTERS