Nissan, Ghosn to Pay Penalties to Settle Charges with U.S. SEC
New York, Sept. 23 (Jiji Press)--The U.S. Securities and Exchange Commission said Monday that Nissan Motor Co. <7201> has agreed to pay 15 million dollars in civil penalty to settle fraud charges related to the false disclosures of executive compensation of Carlos Ghosn, disgraced former chairman of the major Japanese automaker.
Ghosn agreed to pay one million dollars in penalty and former Nissan board director Greg Kelly 100,000 dollars.
Beginning in 2004, Nissan's board delegated to Ghosn the authority to set individual director and executive compensation levels, including his own, according to the SEC.
From 2009 until his first arrest in November 2018 by the Tokyo District Public Prosecutors Office for allegedly underreporting his pay in Nissan's financial statements, Ghosn, "with substantial assistance from Kelly and subordinates at Nissan, engaged in a scheme to conceal more than 90 million dollars of compensation from public disclosure, while also taking steps to increase Ghosn's retirement allowance by more than 50 million dollars," it said.
Each year, Ghosn fixed a total amount of compensation for himself, "with a certain amount paid and disclosed and an additional amount that was unpaid and undisclosed," the commission said, adding that Ghosn and his subordinates, including Kelly, "crafted various ways to structure payment of the undisclosed compensation after Ghosn's retirement."
[Copyright The Jiji Press, Ltd.]