Nissan Motor Co should be fined US$22 million for filing documents that underreported the compensation of former chief executive Carlos Ghosn, Japanese regulators said yesterday, with the troubled firm saying it would not dispute the penalty.
The Japanese Securities and Exchange Surveillance Commission made the recommendation as Ghosn, who was arrested in November last year, awaits trial in Tokyo on four charges of financial misconduct.
Among the allegations against him are claims that he underreported his compensation from 2010 to last year, deferring some of his pay and failing to declare it to shareholders.
Photo: AP
Ghosn denies all the charges against him and has argued there was no final agreement on any deferred payments.
Ghosn’s lawyers said that the allegations are a result of trumped up charges rooted in a conspiracy among Nissan executives, Japanese government officials and prosecutors to oust Ghosn to prevent a fuller merger with French alliance partner Renault SA.
Nissan also faces charges over the alleged underreporting of Ghosn’s income.
The commission in a statement issued yesterday said that it had “examined the false descriptions in securities reports and other documents at Nissan Motors and, as a result, a legislative breach was recognized.”
“Therefore, we advise the [Japanese] prime minister and the head of the Financial Services Agency to issue an order that fines be paid,” the statement said.
The fine covers underreporting between financial years 2014 and 2017, the commission said.
Nissan said in a statement that it took the recommendation “extremely seriously” and would “consider its response” after receiving a formal notice from the agency.
“In the absence of any special circumstances or other reasons, the company intends not to dispute the alleged facts and the amount of the administrative monetary penalty,” Nissan said.
Nissan’s sales and profits have tumbled, and its brand image has been tarnished over the Ghosn scandal.
The automaker has struggled to right itself after the shock arrest of Ghosn last year, replacing its chief executive and slashing full-year forecasts.
No date has yet been set for Ghosn’s trial, although reports suggest the proceedings could begin in April on the charges of underreporting his compensation and using company funds for personal expenses.
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