Carlos Ghosn and another director, Greg Kelly have come under the line of fire at Nissan for underreporting compensation amounts to the Tokyo Stock Exchange securities report.
Nissan Motor Company has announced that the company will seek to remove its Chairman, Carlos Ghosn, from said position owing to serious acts of misconduct committed by him. The acts of misconduct are still being investigated by Nissan, but the company seems to have enough evidence to have arrived at the decision it has come to.
The problem arises from the issue that Ghosn and another director, Greg Kelly have been under-reporting compensation amounts to the Tokyo Stock Exchange securities report. Kelly is also said to be in the firing line alongside Ghosn in regard to the matter. It has also been reported that the investigation has found Ghosn to have been underreporting his compensation from the company, for Ghosn receives numerous payments as chairman of the Renault-Nissan-Mitsubishi alliance.
Nissan has been investigating the matter for months now and has issued a company declaration stating, “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.”
Another Nissan company statement further revealed that Ghosn was also using company assets for personal use.
Nissan has revealed that the company has been providing all necessary information in regard to the matter to the Japanese Public Prosecutors Office.
Following this announcement, Nissan and Renault's shares have taken a serious hit as Ghosn is also the CEO of Renault.