Nissan Allegedly Paid Tuition Fees For Ghosn’s Children To Stanford University

Nissan has reportedly paid the tuition fees for Ghosn’s four children when they attended Stanford University between 2004 and 2015.

The unusual perk was part of Carlos Ghosn’s contract with Nissan from 1999, when he was first hired as CEO of the Japanese manufacturer, according to an anonymous source cited by Bloomberg. This kind of treatment, which isn’t common even among top executives, would have cost Nissan at least $601,000 according to Stanford’s fee schedules of the specific era.

Nissan declined to comment, as well as Ghosn’s lawyer in Paris. If true, the Stanford tuition fees are the latest in a long list of lavish extras Ghosn enjoyed during his time as head of Nissan, Renault and Mitsubishi, including a wedding party at the Chateau of Versailles and luxury residences on four continents.

However, Robin Ferracone, the boss of an executive-compensation consulting firm in the US, thinks that it’s “highly unlikely” that Nissan would pay the university fees for Ghosn’s kids. “Typically you only see tuition reimbursements as part of expatriate assignments, and those are for kids below university age,” Ferracone said.

Nissan’s official filings in Japan and the U.S. didn’t include any information on Ghosn’s benefits. In the US, the law says that executives’ benefits are taxable compensation and that U.S. public companies must report them to investors. The SEC has already opened an investigation into whether Nissan has accurately disclosed the compensations of its executive personnel, with the Japanese company saying it’s cooperating.

In Japan, the law requires companies to report compensation for their top executives into their financial reports but they are not required to detail any benefits awarded to them.

As a frequent public speaker, Ghosn has made at least five public appearances at Stanford during the years his children attended, including speeches at the graduate school of business in 2007, 2010 and 2014.

 

  • xDRAN0x

    What a trainwreck this is

  • Giannis Antypas

    I sort of agree. If this benefit was plain part of his contract, then what ishould be the big deal out of that?
    It was after all legal, it was accepted in advance in both sides’ free will,
    and it was part of his compensation for the job he was hired by Nissan officials.

    I feel once again Nissan shows off its own corrupt tactics,
    as they never forgave Ghosn for attempting to merge their business with Renault.

  • LJ

    Nissan paying his kids’ tuition as a contractual perk isn’t the issue.

    The issue is that Nissan didn’t disclose this as part of his compensation, which is illegal.

  • Patrick Bong

    People don’t like him because he has laid off and taken the livelihoods of so many people for the sake of cost cutting. It’s just a bad look in general to cut costs to the detriment of regular people, yet concurrently supply irregularly lavish benefits for one’s self. For example, what he spent of Renault’s money to help pay for his expensive wedding could have been one year of compensation for a Renault employee who lost his livelihood because it was “necessary” cost cutting. He probably had enough money fallen between his couch cushions to pay for that, but chose not to. This is classic shifting of wealth from regular people to make rich people richer. That’s why it bothers people. Not feeling the “poor CEO experiences so much stress” thing. The dude is beyond wealthy. He wanted to keep working because he loved the power. It’s not like he was forced into the his umpteenth year as CEO to make ends meet.

    • Bo Hanan

      Well said!

    • Tan Lee

      Renault has a sponsorship with the Chateau Versailles where CG had his wedding. The space was made Available to him free of charge due to the sponsorship but Chateau Versailles billed €50k to Renault for the wedding which both Renault and CG did not know about.

      CG did initially cut jobs in Japan in order to save Nissan as they had massive debts. But the jobs came back and more factories were opened worldwide. So in that sense he has created more jobs and income for people not the other way around. I think you got CG mixed up with Kenneth Lay of Enron.

      • SteersUright

        Criminals are locked up. If he broke the law, he deserves to be locked up just as if you, yourself break the law, you deserve to be locked up. CEO’s, like all citizens of any modern nation should all be equally subject to its laws. That is a premise for modern democracies, otherwise we’d still be living with monarchs, nobles, serfs, etc.

        • Tan Lee

          Yes correct we live in a modern nation where by you are ‘Innocent until proven guilty’ except in this case CG was guilty until proven innocent. But it’s a bit hard to prove your innocence when you are locked up in solitary confinement with no contact to the outside world not even a phone call. Even murderers are treated better in prison.

          Also where is the proof? Had Nissan shown us a shred of hard proof? No they have fed us a bogus story and lemmings just lap it up because nothing beats seeing a fat cat fall on their own sword

  • Shelby GT500

    Why Stanford and not Sorbonne in Paris? That would be cheaper

  • Benjamin B.

    He’s being targeted in Japan because he’s a Latino and a Frenchman. He’s not Japanese. This is not about justice. This is about race.

  • Bo Hanan

    So stressful that you rape the company (companies) of everything? Dude, his teams are doing all the work- he’s looking at numbers and talking to the board and press.

  • SteersUright

    CEO’s make enough to be able to pay for their own kids tuition and his use of company funds is despicable. That $600k should’ve been offered as a scholarship to the regular employees that keep a company like Nissan in business. But, of course, a King is always ever greedier for more and more riches. I, for one, and very glad to see corruption addressed and this demonstration that even senior officers are not exempt from modern laws.

  • SteersUright

    awwwww…poor CEO. No single person saves any company, that is a myth. A company flourishes on the backs of thousands who do the day to day work, and do it well. But, Im sure you dont understand just how much stress there is being middle management, never seeing your kids, working excessive hours, and barely making enough to buy a home with today’s real estate prices. No, not stressful at all.

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