Nissan Faces $40 Million Fine For Under-Reporting Ghosn’s Compensation

Nissan could face a fine of up to 4 billion yen ($37 million) over its alleged under-reporting of former chairman Carlos Ghosn’s compensation, The New York Times reports.

Japan’s market watchdog, The Securities and Exchange Commission (SESC), is expected to recommend the fine on the basis that Ghosn’s under-reported salary had a “significant” impact on investor decisions for the car manufacturer.

Neither the SESC or Nissan have commented on the issue, but a source claims that the authorities will start formal investigations into the matter before the end of the month while examining Nissan’s latest annual filings.

Also Read: Carlos Ghosn’s Wife Calls President Trump To Help Her Husband

Nissan could get away with a reduced fine of around 2.4 billion yen ($22 million) if it files documentation before the formal investigation begins and recognizes that its previous reporting of Ghosn’s income was incorrect. The fine would cover a four-year period through to March 2018. Statute of limitations issues would mean the Japanese car manufacturer isn’t liable before that period.

Ghosn has been in and out of custody since November 2018 over a slew of allegations, including claims that he understated his salary by around $84.71 million over a period of nearly a decade. He is also accused of temporarily transferring personal financial losses to the books of Nissan and enriching himself to the tune of around $5 million to the expense of the company. If found guilty on all charges, Ghosn could face up to 15 years in prison.

  • Bo Hanan

    This guy is causing a lot of headache for Nissan-Renault-Mitsubishi. He should be careful he doesn’t suddenly “take ill” and, pass away like the former Ferrari CEO: Mr. Sergio Marchionne.

    • Stephen G

      Are you for real?

      • Bo Hanan

        Are you that naive?

        • Stephen G

          Ahhh, you got me!

  • robotlogic

    They want us to believe that under reporting a 28 Billion dollar companies CEO compensation by 8 million a year had a “significant” impact on investor decisions??? Really? Are they daft or just looking to kick the horse while it’s down??

  • Andrew Ngo

    This shows Nissan acknowledged all these compensation to Ghosn but the problem is how they reported it shareholders and tax authority. What did Ghosn do wrong?

  • Plutonium

    Week before this scandal broke out YouTube had a video made by Nissan. Praising Ghosn alone saving money loosing, boring Nissan from certain bankruptcy and revitalizing vehicle design.

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