Nissan to oust Chairman after finding ‘significant acts of misconduct’

Nissan to oust Chairman after finding ‘significant acts of misconduct’

Nissan to oust Chairman after finding ‘significant acts of misconduct’

A Japanese paper reports Ghosn has been arrested by Tokyo prosecutors, but that has yet to be confirmed. The firm said it has also uncovered evidence of other "significant acts of misconduct" by Ghosn.

For the past two decades, Ghosn has maintained an unusually high profile in a nation where foreign chief executives of major Japanese companies are still relatively rare.

Among the most prominent car-industry executives globally, Ghosn, 64, built the three-way union of Renault, Nissan and Mitsubishi Motors Corp.

Ghosn officially still leads the Renault-Nissan-Mitsubishi alliance as CEO and chairman. Before joining Renault, Ghosn worked for Michelin North America.

The extent of the misconduct allegations, or the arrest charges, were unclear as of Monday morning.

Nissan Motor said on Monday its internal investigations showed its chairman Carlos Ghosn had under-reported his income and had committed other misconduct.

Carlos Ghosn, chairman of Nissan and CEO and chairman of Renault, is set to be removed from Nissan after the vehicle company said it uncovered "significant acts of misconduct".

Ghosn had been criticized for his salary of about $9 million ー exorbitant by Japanese standards.

In the hours after news broke of Ghosn's alleged behaviour, both Nissan and Renault reaffirmed their commitment to the carmaking venture.

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A second Nissan executive, Greg Kelly, was also suspected of collaborating with him to under-report some five billion yen (£34.5m) in Mr Ghosn's income from 2011-2015. Stueber has more than 20 years of experience including previously serving Bank of Hawaii from 1994 to 2000 as vice president, sales manager and investment program director of Bancorp Investment Group.

Carlos Ghosn has been accused of breaching Japanese financial trading law.

The stocks of Nissan and Renault plummeted after the announcement.

Ghosn became a nemesis of French unions and left-wing politicians, who saw him as a symbol of capitalism's excesses, particularly its rich executive pay packages.

Prosecutors confirmed Ghosn had conspired with Kelly to report income of ¥4.9 billion (US$44.5 million) over five years when his actual income for that period had been almost ¥10 billion.

And France, which holds a 15 per cent stake in Renault, said it would stay "vigilant" on the stability of the alliance as well as the French automaker. Mitsubishi and Renault have also not commented, neither has Ghosn's side.

In recent years, however, there has been discord in the company with regard to Ghosn. He was responsible for a dramatic turnaround at Nissan in the early 2000s when the auto firm was on the verge of bankruptcy. He became chief executive of Renault in 2005, leading the two major automakers simultaneously. When the top of Renault is concurrently serving as the top of Nissan with 43 percent of shares, one person has too much authority and that was the problem.

The Japanese automaker's CEO Hiroto Saikawa confirmed that Ghosn was arrested after being questioned by prosecutors following his arrival Japan earlier in the day.

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