Nissan CEO sacked

Photo: The Canadian Press

Chairman and CEO of Renault and Nissan Motor Co.'s Carlos Ghosn.

Nissan Motor Co.'s high-flying chairman Carlos Ghosn is to be dismissed after the company said an internal investigation found he under-reported his income by millions of dollars and engaged in other "significant misconduct."

The Japanese broadcaster NHK said Ghosn was arrested Monday after he voluntarily submitted to questioning by Tokyo prosecutors. The prosecutors' office did not confirm that.

The Yokohama-based company, one of the world's largest automakers, said the violations were discovered during an investigation over several months that was instigated by a whistleblower. Ghosn, 64, also allegedly engaged in personal use of company assets, it said.

Nissan said it was providing information to the prosecutors and co-operating with their investigation. The allegations also concern a Nissan representative director, Greg Kelly, it said.

Nissan said in a statement that its CEO Hiroto Saikawa would propose to its board that Ghosn and Kelly both be removed from their posts.

"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," it said.

Ghosn signed a contract earlier this year that would have run through 2022. His compensation, high by Japan's moderate standards for executive pay, has been an issue over the years.

According to NHK and the Kyodo News Service, Ghosn made nearly 10 billion yen ($89 million) over five years through March 2015, including salary and other income from the company, but reported as if he only made 5 billion yen ($44 million), or half of what he had received.

Nissan's annual securities report shows Ghosn received annual remuneration exceeding 1 billion yen ($8.9 million) until fiscal 2016, when shareholders voted against his pay package. His annual pay dropped to 735 million yen ($6.5 million) in 2017, down more than 30 per cent.

The Nissan-Renault-Mitsubishi group is among the biggest auto alliances in the world, selling about 10 million vehicles a year. Before joining Renault, Ghosn worked for Michelin North America.