Carlos Ghosn received 7.82 million euros in improper payments based on Nissan-Mitsubishi investigation

Carlos Ghosn received 7.82 million euros in improper payments based on Nissan-Mitsubishi investigation

Nissan and Mitsubishi have announced the results from their joint investigation into the (alleged) misconduct carried out by Carlos Ghosn, who is the former chairman of both companies. Ghosn was arrested back in November 2018 on suspected financial law breach for under-reporting of his corporate salary.

According to an official release, it was revealed that Ghosn received improper payments from Nissan-Mitsubishi B.V. (NMBV), a joint venture company established by Nissan and Mitsubishi Motors in June 2017.

The Netherlands-based company’s role is to explore and promote synergies within the Nissan-Mitsubishi Motors partnership, and Ghosn was named the director of the company.

Under his contract with NMBV, Ghosn received a total of 7,822,206.12 euros (RM36,656,920), including tax, in compensation. It is stated that Ghosn entered the contract without first discussing with other board members, namely Nissan CEO Hiroto Saikawa and Mitsubishi Motors CEO Osamu Masuko.

Carlos Ghosn received 7.82 million euros in improper payments based on Nissan-Mitsubishi investigation

This is despite a clear requirement that any decisions regarding director compensation and employment contracts specifying compensation must be approved by NMBV’s board of directors. Saikawa and Masuko reportedly not receive any compensation or other payments from NMBV.

Aside from the above-mentioned discovery, the investigation also confirmed that Ghosn, former representative director Greg Kelly and others began to explore the possibility of paying undisclosed compensation to Ghosn through an equally-owned Netherlands-based unconsolidated joint venture between the companies.

This was soon after the announcement in 2016 that Nissan and Mitsubishi Motors would forge a strategic alliance. Nissan says it views the payments Ghosn received from NMBV was a result of the misconduct, and is looking at measures to recover the sum in full.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • YB Kunta Kinte on Jan 18, 2019 at 7:51 pm

    If follow this kind of strict law, all Proton ex directors would have been arrested.

    This is because in 6 months of his work, Li Chunrong identified that the kroni vendors and suppliers were overcharging Proton the past 20 years and this resulted in Proton going bust.

    Local CEOs and directors could not identify this major problem the past 20 years.

    It is high time we prosecute all directors and ex bosses of Proton. This is because all the bailout money of RM20 billion came from the rakyat to save Proton

    Like or Dislike: Thumb up 6 Thumb down 0
  • Not Toyota Fan on Jan 18, 2019 at 9:01 pm

    Carlos can always say it was a donation from an Arab prince .. LOL

    Like or Dislike: Thumb up 2 Thumb down 0
    • John Bin Dedak on Jan 20, 2019 at 6:08 pm

      Good one! So funny!

      Like or Dislike: Thumb up 0 Thumb down 0
    • stastasta on Jan 22, 2019 at 2:42 pm

      carlos is a pauper compared to our own najib who received 80 times the amount in undisclosed donations (8 million euro vs 2.6 billion ringgit).

      Like or Dislike: Thumb up 0 Thumb down 0
 

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