Executive Pay Seen Underreported at Ghosn's Instruction via Aide

Society Economy

Tokyo, Nov. 21 (Jiji Press)--The alleged underreporting of Nissan Motor Co. <7201> Chairman Carlos Ghosn's executive pay is seen to have been done at his instruction to executives of the Japanese automaker via a close aide, Greg Kelly, informed sources said Wednesday.

With the pay suspected of being underreported by as much as 5 billion yen in fiscal 2010-2014, in violation of the Financial Instruments and Exchange Act, Tokyo prosecutors view Nissan, as a corporation, as bearing grave responsibility for the misconduct.

They are therefore considering application of the act's dual criminal liability provision, which stipulates punishments for both the violator and the employer of the violator, eyeing the possibility of building a case against Nissan as well, according to the sources.

Ghosn, 64, was arrested Monday, along with Kelly, 62, representative director at Nissan, for the alleged compensation underreporting in the company's financial statements.

Kelly, in line with Ghosn's wishes, is believed to have instructed executives of Nissan also to conduct other "serious wrongdoing" later uncovered by Nissan through an internal investigation, namely the alleged misuse of the company's investment funds and private use of corporate money, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press