Plus   Neg

Carlos Ghosn Received $9 Mln Improperly From Nissan-Mitsubishi JV

Nissan Motor Co. (NSANF.PK,NSANY.PK) and Mitsubishi Motors Corp. said Friday that Carlos Ghosn, former chairman of the two companies, improperly received 7.82 million euros or about $9 million from Nissan-Mitsubishi B.V., a joint venture company established by the companies.

Nissan Motor Co.. and Mitsubishi Motors announced results from their ongoing joint investigation into misconduct carried out by Carlos Ghosn. The results confirm that Ghosn received improper payments from Nissan-Mitsubishi B.V. Or NMBV.

NMBV was established in June 2017 as an equally-owned Netherlands-based unconsolidated joint venture with the mission of exploring and promoting synergies within the Nissan-Mitsubishi Motors partnership. Ghosn was made a director of the company.

The companies noted that the joint investigation has confirmed that Ghosn entered into a personal employment contract with NMBV and that under that contract he received a total of 7.82 million euros (including tax) in compensation and other payments of NMBV funds. Despite the clear requirement that any decisions regarding director compensation and employment contracts specifying compensation must be approved by NMBV's board of directors, Ghosn entered into the contract without any discussion with the other board members, Nissan CEO Hiroto Saikawa and Mitsubishi Motors CEO Osamu Masuko, to improperly receive the payments.

In addition, the investigation has also confirmed that soon after the announcement in 2016 that Nissan and Mitsubishi Motors would forge a strategic alliance, 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.

Saikawa and Masuko did not receive any compensation or other payments from NMBV, the Nissan Motor and Mitsubishi Motors said.

Nissan said it views the payments Ghosn received from NMBV to be the result of misconduct, and will consider measures to recover from Ghosn the full sum.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
McDonald's Corp. has announced the return of its popular Shamrock Shake milkshake for a limited time at participating U.S. restaurants nationwide. The minty green milkshake is made with McDonald's vanilla soft serve blended with Shamrock Shake syrup and topped with whipped topping. It first debuted on the McDonald's menu in 1970 and has been a seasonal tradition for nearly 50 years. Asia-focused lender HSBC, through its blockchain-powered platform, has reduced the cost of settling foreign exchange trades by 25 percent, Reuters reported quoting a bank executive overseeing the project. Mark Williamson, chief operating officer of FX cash trading and risk management, told that the bank processes between 3,500 and 5,000 trades a day on its "FX Everywhere" system. PepsiCo, Inc. (PEP) reported fourth-quarter core EPS of $1.49 compared to $1.31, prior year. Excluding the impact of foreign exchange translation, core constant currency EPS increased 17 percent year-over-year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per...
Follow RTT