Nissan shares closed lower in Asia overnight, amid news the Japanese carmaker is set to remove its chairman following evidence of financial misconduct. Nissan has discovered that Carlos Ghosn has, among other wrongdoings, been under-reporting his pay for some years.
Nissan shares ended the Monday Asian trading session 0.45% lower at JPY1,006. The stock has been broadly steady in recent weeks' activity.
Nissan uncovers Ghosn misconduct
Nissan said earlier Monday, that following a whistle blower report, the car maker has been conducting an internal investigation into the claims that Ghosn has formally misrepresented his earnings.
The findings of the investigation show that is the case. In addition, board member and Director Greg Kelly has also been involved in financial wrongdoing. The Japanese business is proposing to remove Ghosn from the company.
“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,” Nissan said.
“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,” the company added.
Ghosn to be removed
Following the evidence of financial misconduct, Nissan said it had provided evidence to the Japanese Public Prosecutions Office. Nissan’s CEO, Hiroto Saikawa, is also set to propose the Board remove Ghosn and Kelly from their posts at the company.
Separately, reports suggest that Ghosn has been arrested in relation to this news.
Meanwhile, Renault shares have slipped 10.37% to €57.81 following the news; Ghosn is also Chairman and Chief Executive of the French car maker, that partners the Japanese manufacturer.
“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,” the Japanese car maker said.