Nissan chairman Carlos Ghosn arrested over serious misconduct

According to a media report, Carlos Ghosn has been arrested by the Japanese authorities on suspicion of underreporting his compensation and other financial violations.

Over the past several months, Nissan has been conducting an inquiry based on a whistleblower report over the involvement of Carlos Ghosn and Representative Director Greg Kelly. Both Ghosn and Kelly were underreporting compensation amounts to the Tokyo Stock Exchange, in an attempt to reduce the compensation amount of Ghosn disclosed to the public. Apart from this, it was also uncovered that the company assets were used for personal reasons by Ghosn with the involvement of Kelly.

Nissan’s CEO will propose to the company board to remove Ghosn from the position of Chairman and Representative Director. The removal of Kelly from his post will also be proposed. Further, Nissan has apologised to the shareholders over the misconduct of their Chairman and are also cooperating with the Japanese authorities.

The  64-year-old served as the Chairman of Nissan and is currently the chairman and CEO of the Renault-Mitsubishi-Nissan alliance as well as the CEO of Renault. He is credited with turning around Nissan and pushing them to electric cars as well as forming a global alliance.

Source: USA Today