Nissan’s board has today ousted Chairman Carlos Ghosn following his shock arrest earlier this week.
Nissan's Board of Directors has officially discharged Carlos Ghosn following his arrest over alleged financial misconduct.
— TicToc by Bloomberg (@tictoc) November 22, 2018
The 64-year-old group chairman was arrested following an internal investigation at Nissan that revealed “significant acts of misconduct” over many years. Japanese prosecutors said Ghosn and Representative Director Greg Kelly, who has also been arrested, conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10bn yen ($88m).
Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, said that court approval was received a day earlier to detain Ghosn for 10 days but he could not comment on whether he had admitted to the allegations.
Nissan has also decided to consider creating a “special committee” to examine its corporate governance. This would include developing “better governance of director compensation”.