Wednesday, March 22, 2023
British Herald
Advertisement
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
Home World Asia

Nissan shares slump after Ghosn arrested over alleged financial misconduct

Editorial Bureau by Editorial Bureau
November 20, 2018
0
Nissan shares slump after Ghosn arrested over alleged financial misconduct

FILE PHOTO: Carlos Ghosn, chairman and CEO of the Renault-Nissan-Mitsubishi Alliance, responds to a question on the alliance's new venture capital fund during roundtable with journalists at the 2018 CES in Las Vegas, Nevada, U.S. January 9, 2018. REUTERS/Steve Marcus/File Photo

74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

TOKYO (Reuters) – Nissan Motor Co’s shares fell more than 6 percent on Tuesday as Chairman Carlos Ghosn’s arrest a day earlier sent shockwaves through the business world and threw into doubt the future of Japan’s No.2 automaker and its global alliance.

You might also like

Ma Ying-jeou, former Taiwan leader will visit China

North Korea launches long range missile hours before Tokyo summit

More clashes in Pakistan after Imran Khan’s arrest

Nissan said on Monday an internal investigation triggered by a tip-off from a whistleblower had revealed that Ghosn engaged in wrongdoing including personal use of company money and under-reporting for years how much he was earning. He was arrested and would be fired from Nissan’s board this week, it said.

Ghosn is also chairman and chief executive of Nissan’s French partner, Renault, and chairman of Japan’s Mitsubishi Motors Corp  the third partner in the alliance.

Ousting Ghosn will pose questions about an alliance that he personally shaped and had pledged to consolidate with a deeper tie-up, before eventually stepping back from its operational leadership.

It also brings into focus the future of Nissan – the biggest partner in the alliance – at a time it is seeing falling profits due to weak U.S. sales and is facing heightened competition from rivals who are investing heavily in new growth areas like internet connected cars and self-driving vehicles.

Ghosn’s alleged improprieties also raise questions over governance at the alliance in which the three partners’ boards are all chaired by a single executive.

Speaking at a late-night news conference on Monday, Nissan CEO Hiroto Saikawa conceded that too much power had been concentrated on Ghosn, and that the implications of his stewardship of both Renault and Nissan had gone unquestioned since 2005.

Prosecutors said in a statement that Ghosn and Representative Director Greg Kelly conspired to understate Ghosn’s compensation over five years starting in fiscal 2010 as being about half of the actual 9.998 billion yen ($88.9 million).

Ghosn joined Nissan in 1999 and became its CEO in 2001. He remained in that post until last year and had received 9.2 million euros ($10.53 million) in pay for the final year as CEO.

“By under-reporting his corporate salary, he basically deprived Nissan’s shareholders of opportunities to judge if the amount of his salary was appropriate,” Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan, said of Nissan’s allegations.

LUXURY LIVING?

Japanese public broadcaster NHK reported Nissan paid billions of yen for the purchase and renovation of homes for Ghosn in Rio de Janeiro, Beirut, Paris and Amsterdam, citing unnamed sources.

The properties had no business purpose and were not listed as benefits in filings to the Tokyo bourse, NHK said. CEO Saikawa declined on Monday to discuss specifics on Ghosn’s personal use of company money.

Nissan spent 2 billion yen on homes for Ghosn in Rio and Beirut via a Dutch subsidiary, with Kelly overseeing the transaction, the Nikkei newspaper reported, citing unnamed sources.

There has been no comment from Ghosn or Kelly on the allegations and Reuters could not contact them for comment.

In a sign of the broader political fallout, Hitoshi Kawaguchi, Nissan senior vice president handling government relations, met with Japan’s top government spokesman on Tuesday, telling media he had requested good relations between Japan and France be maintained.

The Asahi newspaper cited unnamed sources as saying a company employee gave prosecutors information on Ghosn in return for lighter treatment, the second instance of a plea deal in Japan – a system introduced in June.

Nissan shares fell to a two-year low of 940 yen and were later trading down 5 percent at 955 yen.

Shares of Mitsubishi, which also said on Monday it would remove Ghosn as its chairman, slid by about 6 percent. Renault shares lost 8.4 percent on Monday.

Ghosn’s downfall was unlikely to lead to a sharp fall in car sales, capping the downside for Nissan shares, said Fujio Ando, adviser at Chibagin Securities.

“The fact that the case came to light because of a whistleblower is also positive on the whole, in terms of corporate governance. If this had been revealed by outsiders, that would have been a different story,” he said.

($1 = 112.4400 yen)

(Reporting by Chang-Ran Kim and Sam Nussey; Additional reporting by Hideyuki Sano, Ayai Tomisawa and William Mallard; Editing by Stephen Coates and Muralikumar Anantharaman)

Share30Tweet19
Editorial Bureau

Editorial Bureau

Recommended For You

Ma Ying-jeou, former Taiwan leader will visit China

March 20, 2023
Ma Ying-jeou, former Taiwan leader will visit China

Former Taiwan President Ma Ying-jeou will visit China next week. In an effort to defuse hostilities between the self-governing island and the mainland, according to a spokesman. Ma...

Read more

North Korea launches long range missile hours before Tokyo summit

March 16, 2023
North Korea missile launch during a news program at the Seoul Railway Station in Seoul

North Korea conducted a test launch of an intercontinental ballistic missile on Thursday, ahead of the Tokyo summit. Just hours before the leaders of South Korea and Japan...

Read more

More clashes in Pakistan after Imran Khan’s arrest

March 15, 2023
Supporters of former Prime Minister Imran Khan face riot police officers during clashes, in Lahore, Pakistan

Supporters of former Pakistan Prime Minister Imran Khan threw bricks at police in Lahore, Pakistan. Police have been besieging the 70-year-old opposition leader’s house in the eastern city...

Read more

Honduras to establish relations with China, end of ties with Taiwan.

March 15, 2023
Honduras under her administration is opening diplomatic relations with the People´s Republic of China.

Honduras President Xiomara Castro announced Tuesday that her government will seek to establish diplomatic relations with China. Which would imply severing relations with Taiwan. The switch would leave...

Read more

Japan, S. Korea summit must overcome history to renew ties

March 14, 2023
Japan, S. Korea summit must overcome history to renew ties

Leaders of South Korea and Japan will meet in Tokyo this week, hoping to resume regular visits after a gap of over a decade and overcome resentments that...

Read more
No Result
View All Result
Bulgaria arms trade booms on Ukraine war

“Guns and Roses” Bulgaria arms industry booms amid Ukraine war

March 22, 2023
Xi Jinping and Putin

Putin welcomes China’s controversial peace proposals for Ukraine

March 22, 2023
Covid - 19 Virus

COVID-19 cases in Russia increased by 9,373 – reports

March 22, 2023

Tags

amazon australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong ICC Men's T20 india iran israel italy japan joe biden lockdown London new zealand north korea Rishi Sunak russia south korea spain T20 T20 World Cup taiwan thailand Trump turkey UK Ukraine usa
British Herald

Top News in World: Read Latest News on Sports, Business, Entertainment, Blogs and Opinions from leading columnists.

CATEGORIES

  • Africa
  • Articles
  • Asia
  • Brand Feature
  • Business
  • Climate & Environment
  • Companies
  • Crypto
  • Culture and Lifestyle
  • Daily Roundup
  • Economics
  • ECONOMY
  • edel
  • Entertainment
  • Europe
  • Fashion
  • Finance
  • Financial Markets
  • Fintech
  • Health
  • IN UK 01
  • IN UK 02
  • Investing
  • Latin America
  • Market
  • Middle East
  • nsp
  • Oceania
  • Opinion
  • Pharma/BioTech
  • Politics
  • Reviews
  • Science & Technology
  • Sport
  • Sustainability
  • Tech
  • Technology
  • Travel
  • UK
  • Uncategorized
  • USA
  • Videos
  • World

BROWSE BY TAGS

amazon australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong ICC Men's T20 india iran israel italy japan joe biden lockdown London new zealand north korea Rishi Sunak russia south korea spain T20 T20 World Cup taiwan thailand Trump turkey UK Ukraine usa

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

No Result
View All Result
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?