|Nissan’s chairman is arrested.|
|An internal investigation found that Carlos Ghosn, above, one of the auto industry’s most high-profile executives, underreported his compensation to the Japanese government for several years.|
|A director at the company, Greg Kelly, was also accused of financial misconduct and arrested. Nissan recommended that both be removed from their positions.|
|Mr. Ghosn, a French citizen, arrived at Nissan in 1999 after the French carmaker Renault bought a large stake in the Japanese company. He was widely hailed for saving it from financial collapse through cost-sharing and the elimination of 21,000 jobs. But he has had bitter pay disputes with the French government, a major Renault shareholder.|
|Nissan’s investigation into Mr. Ghosn began after a whistle-blower said he had been misrepresenting his salary and using company assets for personal purposes|
And finally, here’s our latest take:
Carlos Ghosn, the chairman of Nissan and one of the world’s most powerful automotive executives, has been arrested by Japanese prosecutors in a move that sent shockwaves through the industry.
The 64-year-old French-Brazilian is suspected of having understated his income on financial statements and was exposed by a whistleblower. Nissan said it will fire him this week as the company admitted it had left him in control for too long.
Ghosn is regarded as one of the leading figures in the global car industry, having forged an alliance between France’s Renault, Nissan and Mitsubishi that created the world’s second-largest car manufacturer. As well as chairing Nissan, Ghosn is chief executive and chairman of Renault and chairman of Mitsubishi.
In a statement, Nissan said that “over many years” Ghosn and another senior executive, Greg Kelly, had 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”….