Nissan Chair Carlos Ghosn Ousted Following Arrest Over Financial Misconduct
Ghosn Removed from Chairman Position at Renault–Nissan–Mitsubishi
Carlos Ghosn, the ambitious and high-profile executive in charge of the Renault–Nissan–Mitsubishi Alliance, has been removed as the chairman and CEO of the French-Japanese automaker. The surprising announcement comes on the heels of a Nissan Motor Co., Ltd. internal investigation into Ghosn’s alleged financial misconduct.
Following a whistleblower report, Nissan’s investigation showed evidence of misconduct from Ghosn, as well as the company’s Representative Director Greg Kelly. According to Nissan, both Ghosn and Kelly reported compensation to the Tokyo Stock Exchange that was less than Ghosn’s actual pay. Nissan also reports that Ghosn performed “numerous other significant acts of misconduct,” including personal use of company assets.
Nissan CEO Hiroto Saikawa will propose that Ghosn be removed as the company’s chairman and representative director and Kelly be removed as representative director. The company says it has been providing information to the Japanese Public Prosecutors Office and fully cooperating with their investigation.
According to CNN.com, Ghosn was arrested in Japan today for his alleged misdeeds. As a result, stocks for Nissan went into freefall, dropping $1.65 per share between closing on Friday at $17.95 and opening today at $16.30. The price has recovered somewhat as the day has gone on, currently trading at about $16.90. Mitsubishi and Renault have faced similar losses in the last few days following news of Ghosn’s misconduct. Directors from both of Nissan’s partners have recommended he be removed from the companies’ executive offices.
Source: Nissan, CNN.com