it is reported that Carlos & middot; Ghosn, chairman of Nissan Motor Company, a large Japanese enterprise, was arrested yesterday (November 19) by the special search Department of the Tokyo local prosecutor's office on suspicion of understatement. Let's take a look at the details.
Authorities arrested Carlos middot ghorn, 64, chairman of the board, and gray middot Kelly, 62, director, on suspicion of underreporting their directors' remuneration in the company's annual report and violating the financial commodities trading act.
According to Nissan's annual report, in the three years up to fiscal 2016, Ghosn's annual remuneration has exceeded 1 billion yen (about S $12 million), while in fiscal 2017, his remuneration was 735 million yen (about S $9 million), more than 30% less than the highest record of JPY 1098 million in fiscal 2016.
The news that Mr. Ghosn didn't declare his income suddenly attracted the attention of all walks of life. Nissan also cut off relations with Mr Ghosn yesterday, issuing an emergency statement saying it would remove him as chairman of the board. It was reported that Nissan secretly investigated Ghosn several months ago, confirming that he was conspiring to steal public funds with Kelly, another director.
Ghosn was the first foreign executive to be reused by Japanese companies. In the 1990s, Nissan was forced to reform from Renault because of the economic crisis. Japanese media pointed out yesterday that Ghosn was the "savior" of Nissan, bringing Nissan back from the brink of death through cost cutting and other measures. Later, he teamed up Nissan with Renault and MITSUBISHI to boost the auto sales of the alliance to the second place in the world. As a result, Ghosn also climbed to the top of his career. In addition to being the chairman of the Renault Nissan Alliance, he also served as the president of Renault and the chairman of Nissan and Mitsubishi Motors. Japan's NHK pointed out that Ghosn's financial scandal not only hurt his personal achievements, but also tarnished the image of Nissan and Renault.
Nissan said in a statement: 'we are very sorry for the many troubles it has caused to people concerned. We will investigate the problems in enterprise management as soon as possible and take further countermeasures. '