US Securities and Exchange Commission probes Nissan , Latest Business News - The New Paper

US Securities and Exchange Commission probes Nissan

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TOKYO The US Securities and Exchange Commission is investigating Nissan over executive pay, the company said yesterday, the latest blow for the auto giant reeling from the arrest of former chairman Carlos Ghosn over alleged financial misconduct.

"I can confirm that we have received an inquiry from the SEC and are cooperating fully," said Nissan spokesman Nicholas Maxfield.

Bloomberg News reported the probe was focused on whether Nissan disclosed executive pay properly and had adequate controls to prevent improper payments.

News of the probe comes as Nissan deals with the fallout from the shock November arrest of Ghosn, who remains in a Tokyo detention centre facing three charges of financial impropriety.

He faces two charges of understating his pay over the course of eight years, and a third related to an alleged scheme to transfer personal losses to Nissan's books.

Nissan, which said it began investigating Ghosn after a whistleblower report, also faces charges over the alleged under-reporting of compensation.

Ghosn has denied any wrongdoing, but Nissan moved quickly after his arrest to remove him as chairman.

The Franco-Brazilian-Lebanese has also been removed from leadership posts at Mitsubishi Motors and Renault.

The three automakers form an alliance that Ghosn forged and led, and his arrest has laid bare internal tensions.

The tycoon, 64, has repeatedly sought release on bail to no avail, with the courts ruling he is a flight risk and could tamper with evidence if freed. - AFP