Nissan Motor Co. Chairman Carlos Ghosn was arrested by the special investigation squad of the Tokyo Public Prosecutors Office on Monday on suspicion of violating the Financial Instruments and Exchange Law, investigative sources said.
According to the sources, Ghosn allegedly understated his remuneration in the company’s securities report.
Nissan confirmed that the chairman had understated his remuneration in its securities report and will propose his dismissal at a board meeting.
After French automaker Renault invested in Nissan, Brazilian-born Ghosn joined the company as its chief operating officer in June 1999 with the mission of rehabilitating the financially troubled Japanese automaker.
Nicknamed “Cost Cutter,” Ghosn led Nissan to a swift recovery with a three-year survival plan, and the automaker posted record-high profits for the business year ending March 2003.
He became president of the automaker in June 2000 and assumed the dual post of president and chairman in June 2008.
He also assumed the chairman’s post of Mitsubishi Motors Corp. in December 2016 when Mitsubishi Motors was hit by an emission data falsification scandal. Mitsubishi Motors received investment from Nissan, effectively putting it under the Nissan umbrella.
Effective April 1 last year, Ghosn stepped down as Nissan’s president and chief executive officer and has since served as chairman of Nissan, Renault and Mitsubishi Motors.
In June last year, Ghosn said his remuneration was ¥1.098 billion for fiscal 2016, exceeding the ¥1 billion mark for the third straight year.
In June this year, he said his remuneration for fiscal 2017 was ¥730 million, down 33 percent from the previous year.Speech