Tuesday, March 28News That Matters

Nissan to fire chairman Ghosn for 'serious misconduct'

Nissan is to seek the removal of its chairman Carlos Ghosn for “serious misconduct”, the company has said.

The announcement was made shortly after reports emerged that Mr Ghosn, who is also chief executive and chairman of Renault, faced arrest in Japan following an internal investigation into his financial affairs at Nissan.

Renault shares hit their lowest level in almost four years on the news.

Carlos Ghosn has been credited with turning round the fortunes of both Nissan and Renault
Image: Carlos Ghosn, seen here on a post-Brexit vote visit to Downing Street, has been credited with turning round the fortunes of both Nissan and Renault

Trading in Nissan shares had already ceased for the day.

Nissan said it had been examining Mr Ghosn’s reporting of his compensation for several months and the actions of another director, Greg Kelly.

Its statement said: “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.”

Neither Mr Ghosn or Mr Kelly have commented on the allegations.

Mr Ghosn is seen by many observers as the most powerful executive in the automotive industry.

He oversees the alliance involving Nissan, Renault and Mitsubishi and has led recoveries at all three brands.

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Mr Ghosn, who was born in Brazil, made his name after taking the top job at Nissan in 2001 and was credited with leading its fightback from near bankruptcy.

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