See More on Facebook

Economics

New Ghosn details reveal massive hidden pay

Ghosn suspected of understating pay by ¥9,5 billion over 9 years.


Written by

Updated: December 5, 2018

The amount of executive remuneration former Nissan Motor Co. Chairman Carlos Ghosn received from the automaker that was not stated in the company’s securities reports totaled about ¥9.5 billion over nine years from the business year ending March 2010 to that ending March 2018, according to sources.

His executive remuneration, including the unstated amount of pay, has steadily increased almost every year since the business year ending March 2009, the sources said. In the business year ending March 2010, a system requiring companies to disclose their executives’ remuneration was introduced.

The detailed amount of Ghosn’s remuneration was recorded in materials, including memorandums created by former Nissan Representative Director Greg Kelly, 62, and other executives at the instruction of Ghosn, according to the sources.

Similar findings have been discovered by the special investigation squad of the Tokyo District Public Prosecutors Office, which believes that Ghosn, 64, decided the detailed amount of his remuneration on his own, but intentionally had it understated in the securities reports.

According to sources, Ghosn decided to receive part of his compensation after stepping down as an executive, following the introduction of the disclosure system of executives’ remuneration in the business year ending March 2010, to avoid criticism against his high pay.

While he did not state the amount of pay he was to receive after he retires, he created memorandums and other documents each year to ensure that he would later receive payment.

The Yomiuri Shimbun has learned that Ghosn’s pay was about ¥1.8 billion in the business year ending March 2009 before the disclosure system was introduced.

In the business year ending March 2010 when the system started, he reduced his remuneration to about ¥1.4 billion but had it stated as ¥891 million in the securities report, according to the sources, as Nissan was in the red in the business year ending March 2009, mainly due to the impact of the collapse of U.S. investment bank Lehman Brothers in the autumn of 2008.

From the business year ending March 2010, Nissan’s performance recovered and Ghosn’s remuneration increased to about ¥1.8 billion in the business year ending March 2011, according to sources. Since then, the amount allegedly had grown by about ¥100 million annually, increasing to about ¥2.4 billion in the business year ending March 2017.

In the business year ending March 2018, Ghosn announced that his pay was ¥735 million, down 33 percent from a year earlier, because he withdrew from the posts of president and chief executive officer of Nissan. However, his executive remuneration was allegedly ¥2.4 billion — the same as that of the previous year — with the unstated portion swelling to more than ¥1.6 billion.

Ghosn and Kelly have been arrested on suspicion of violating the Financial Instruments and Exchange Law by allegedly conspiring to understate Ghosn’s executive remuneration in Nissan’s securities reports by about ¥5 billion from the business year ending March 2011 to that ending March 2015.

During the interrogation by the prosecutors, they both denied the allegations, saying, as it had yet to be determined whether Ghosn would receive part of the remuneration after he steps down, he was not obliged to state the deferred payment on the securities reports.



Enjoyed this story? Share it.


The Japan News
About the Author: The Japan News is published by The Yomiuri Shimbun, which boasts the largest circulation in the world.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

China, US to talk trade in Beijing next week

Trade talks designed to break deadlock and end tariffs which have slowed down both economies. US President Donald Trump has announced that US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will head to Beijing for trade talks on Feb 14-15, the White House said Friday morning. The principal-level meetings, following discussions that took place on Jan 30-31 in Washington, will be preceded by deputy-level negotiations that will begin on Feb 11, led by Deputy USTR Jeffrey Gerrish, according to a statement from the White House Press Secretary Office. Carlos Gutierrez, former US Secretary of Commerce, said that trade disputes are bad for both sides. “So I would hope that we have reached the limit in terms of escalation, and that we can continue the dialogue to reach an agreement,” he said in an interview on Wednesday. Last week, top Chinese and US trade


By China Daily
February 11, 2019

Economics

Japan, Britain to jointly invest in science and technology research

Both governments will survey areas of potential overlapping interests. The Japanese and British governments plan to set up a working-level panel to jointly invest in science and technology research, The Yomiuri Shimbun has learned. The two governments will exchange memorandums of agreement on the issue as early as this month and begin selecting research subjects. According to sources, six organizations will participate in the panel: the Japan Society for the Promotion of Science, the Japan Science and Technology Agency and the Japan Agency for Medical Research and Development — all of which provide research assistance — and the Education, Culture, Sports, Science and Technology Ministry, and Britain’s Department for Business, Energy and Industrial Strategy and the U.K. Research and Innovation body. It will be the first time Japan has joined with a foreign co


By The Japan News
February 8, 2019

Economics

Japan, EU must protect free trade by establishing firmer relationship

The EU-Japan free trade deal is now in effect signaling a new era in trade relations between the two. Japan and the European Union should build a firmer cooperative relationship and contribute to boosting free trade. The Japan-EU Economic Partnership Agreement, which has taken effect, calls for abolishing or reducing tariffs on more than 90 percent of trade items, facilitating investment and protecting intellectual property rights. The combined gross domestic product of Japan and the EU accounts for about 30 percent of the world total. It is highly significant that fair, sophisticated rules have been laid out and a huge free-trade zone established. This bilateral EPA is expected to invigorate trade in goods and the flow of funds, thereby helping enhance the growth potential of both sides. With the enforcement of the Japan-EU EPA, Japanese consumers will be


By The Japan News
February 5, 2019

Economics

Cash handouts a precursor universal basic income in India?

Is universal basic income around the corner in India. Is the beginning of direct benefit transfer of funds to India’s most marginalised citizens which the country’s Budget for the financial year starting 1 April unveiled in terms of a massive handout for small farmers the holy grail in the fight against debilitating and widespread poverty? Is it, as the Wall Street Journal asked in a recent article, a possible prelude to implementing a universal basic income in India? The emerging political consensus in India seems to indicate that the answer to both questions is in the affirmative. The government of Prime Minister Narendra Modi, in its last Budget before it goes up for re-election in general elections scheduled for April-May this year, promised pay-outs to poor farmers – well over 50 per cent of Indians are still dependent on agriculture for a living — through the direct benefit tr


By Asia News Network
February 5, 2019

Economics

Pakistan seals financial assistance from UAE

$3 billion financial assistance sealed as Abu Dhabi Crown Prince meets Imran Khan in Islamabad. Pakistani and United Arab Emirates leadership have met thrice now in three months. Prime Minister Imran Khan visited the UAE twice after assuming office in August to seek economic assistance. Both countries last week finalised the terms and conditions of a $6.2 billion support package for Islamabad to help address its balance-of-payments crisis. A joint statement issued after the UAE royal’s visit said Prime Minister Khan thanked the crown prince for the “generous” balance-of-payments support of $3 billion, which appears to have materialised first out of the total financial package. Crown Prince Sheikh Mohammed bin Zayed, who last visited


By Dawn
January 7, 2019

Economics

AIIB approves applications of six more countries

The total of countries with a membership in the China-led bank now stands at 93. The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, bringing AIIB’s total approved members to 93. The new group of approved members is comprised of Algeria, Ghana, Libya, Morocco, Serbia and Togo. “Within three years, AIIB’s membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member’s commitment to multilateral cooperation and strengthens AIIB’s role in the international financial community,” said AIIB Vice President and Corporate Secretary Sir Danny Alexander. “The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, esp


By China Daily
December 21, 2018