Is this true? Can This really be happening? Nissan CEO Hiroto Saikawa, at a press conference has just said the board will meet this Thursday to discuss Ghosn’s dismissal. It seems that Ghosn is under scrutiny for allegedly under-reporting his income and using corporate assets for personal use. The company also is planning to terminate fellow board member Greg Kelly, 62, who rose through the executive ranks as a director of human resources.
Ghosn is believed by Nissan to have under-reported his income over multiple years and misused corporate assets. Kelly was “deeply involved” in the scheme, spokesman Nicholas Maxfield said.
Saikawa said Nissan was informed by authorities that Ghosn and Kelly have been arrested. Ghosn voluntarily went with Tokyo prosecutors. Nissan was quick to release this press statement below.
“Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.
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.
Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.
Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.
As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director. Saikawa will also propose the removal of Greg Kelly from his position as Representative Director.
Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”
