Nissan announced Monday that an internal investigation had found the auto group's chairman, Carlos Ghosn, had under-reported his income and proposed that he be dismissed, sending Nissan stocks tumbling 12 percent in early trading, reports FRANCE 24.
Nissan Motor Co Ltd said on Monday it was moving to terminate Carlos Ghosn from his chairman’s post after finding that he had used company money for personal use and committed several other serious acts of misconduct.
The Japanese automaker said that based on a whistleblower report, it had been investigating possible improper practices of Ghosn and Representative Director Greg Kelly for several months, and that it was fully cooperating with investigators.
"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
It said CEO Hiroto Saikawa would propose to the Nissan board to remove Ghosn and Kelly.
The Yomiuri newspaper reported that Ghosn had been arrested by Tokyo prosecutors on suspicion of under-reporting his salary. Earlier, several outlets had reported he was being questioned.
The news comes as a shock in Japan where Ghosn, a rare foreign top executive, is well regarded for having turned Nissan around from near bankruptcy. Ghosn is also chairman and chief executive of France’s Renault.