BUSINESS Nissan faces SEC probe over executive pay

BUSINESS

Nissan faces SEC probe over executive pay

AFP

15:13, January 28, 2019

The US Securities and Exchange Commission is investigating Nissan over executive pay, the firm said Monday, the latest blow for the auto giant reeling from the arrest of former chairman Carlos Ghosn over alleged financial misconduct.

VCG31N1074592702 (1).jpg

File photo: VCG

"I can confirm that we have received an inquiry from the SEC, and are cooperating fully," said Nissan spokesman Nicholas Maxfield.

He declined to provide any further details. Bloomberg News reported the probe was focused on whether Nissan disclosed executive pay properly and had adequate controls to prevent improper payments.

News of the investigation comes as Nissan deals with the fallout from the shock November 19 arrest of its former chairman Carlos Ghosn, who remains in a Tokyo detention centre facing three charges of financial impropriety.

He faces two charges of under-stating his pay over the course of eight years, and a third related to an alleged scheme to transfer personal losses to the Japanese automaker's books.

Nissan, which said it began investigating Ghosn after a whistleblower report, also faces charges over the alleged under-reporting of compensation.

Ghosn has denied any wrongdoing, but Nissan moved quickly after his arrest to remove him as chairman. 

The Franco-Brazilian-Lebanese tycoon has also been removed from leadership posts at Mitsubishi Motors and Renault.

The three automakers form an alliance that Ghosn forged and led, and his arrest has laid bare internal tensions.

France's President Emmanuel Macron on Sunday said he wanted to maintain "balance" in the alliance.

He also said he had told Japan's Prime Minister Shinzo Abe he was "concerned" about Ghosn's ongoing detention.

The tycoon has repeatedly sought release on bail to no avail, with the courts ruling he is a flight risk and could tamper with evidence if freed.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue