Nissan Chairman Carlos Ghosn Arrested for Under-Reporting Salary

Nissan Chairman Carlos Ghosn Arrested for Under-Reporting Salary

Nissan Chairman Carlos Ghosn Arrested for Under-Reporting Salary

The firm said that it has passed on the information gathered to the Japanese public prosecutor's office, and there are multiple media reports, including from Japanese public broadcaster NHK, that Ghosn has been arrested by authorities in the country.

A French citizen, Ghosn also was credited with helping French carmaker Renault become profitable through cost-cutting measures and new products like electric cars.

Nissan revealed that an internal investigation concluded that Ghosn allegedly under-reported his income and misused corporate assets.

"These two gentleman are arrested this evening, that's what I understand", Saikawa said at the press conference.

The company said its investigation found that Ghosn, 64, and the other board member, Greg Kelly, had been under-reporting Ghosn's compensation.

Nissan said that the misconduct uncovered constituted clear violations of the duty of care as directors, adding that Nissan's Chief Executive Officer Hiroto Saikawa will now propose to the Nissan Board of Directors to promptly remove Ghosn from his positions.

While there could be some scrutiny of the relationships between the companies, they're so intertwined now that cutting them apart would be hard, said Kelley Blue Book analyst Michelle Krebs. He said in September that he will continue to pare back his roles at the three individual companies, while continuing to head their alliance.

In 2003 he was named by Fortune one of the 10 most powerful people in business outside the USA and was considered one of the most respected business leaders in the world.

The development surprised many people and raised questions about the partnership of Nissan, Renault and Mitsubishi Motors.

Millions of dollars had been spent to purchase and renovate the homes in Brazil, Lebanon, France and the Netherlands, NHK said. He is chairman of Nissan, chief executive and chairman of Renault and chairman of Mitsubishi. But experts said it is unlikely he will be able to stay on there or at Renault, where he is also CEO.

He said he would meet the state's representatives at Renault to discuss the issue on Tuesday.

Ghosn is a towering figure in the motor industry and one of very few foreign top executives in Japan, and is revered there for rescuing Nissan from near bankruptcy. Renault has more than a 43-percent fully voting stake in Nissan, while Nissan has a 15-percent non-voting stake in Renault.

Renault shares tumbled about 10% in afternoon trading in Paris. Ghosn remained in that post till previous year. His compensation, high by Japanese standards, has been a source of controversy over the years.

The allegations are a serious blow at a time when Nissan and Mitsubishi Motor Co are still overcoming scandals over their quality testing reporting.

The executive known as "Le Cost Killer", for taking a ruthless attitude to business turnarounds, was arrested on Monday after a private flight in to Tokyo. He has met repeatedly with the past four French presidents; no major economic event in France was held without Ghosn.

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