ZCZC
BCN-08
JAPAN-NISSAN-AUTOMOBILE-GHOSN-SEC
Nissan faces SEC probe over executive pay
TOKYO, Jan 28, 2019 (BSS/AFP) – The US Securities and Exchange Commission
is investigating Nissan over executive pay, the firm said Monday, the latest
blow for the auto giant reeling from the arrest of former chairman Carlos
Ghosn over alleged financial misconduct.
“I can confirm that we have received an inquiry from the SEC, and are
cooperating fully,” said Nissan spokesman Nicholas Maxfield.
He declined to provide any further details. Bloomberg News reported the
probe was focused on whether Nissan disclosed executive pay properly and had
adequate controls to prevent improper payments.
News of the investigation comes as Nissan deals with the fallout from the
shock November 19 arrest of its former chairman Carlos Ghosn, who remains in
a Tokyo detention centre facing three charges of financial impropriety.
He faces two charges of under-stating his pay over the course of eight
years, and a third related to an alleged scheme to transfer personal losses
to the Japanese automaker’s books.
Nissan, which said it began investigating Ghosn after a whistleblower
report, also faces charges over the alleged under-reporting of compensation.
Ghosn has denied any wrongdoing, but Nissan moved quickly after his arrest
to remove him as chairman.
The Franco-Brazilian-Lebanese tycoon has also been removed from leadership
posts at Mitsubishi Motors and Renault.
The three automakers form an alliance that Ghosn forged and led, and his
arrest has laid bare internal tensions.
France’s President Emmanuel Macron on Sunday said he wanted to maintain
“balance” in the alliance.
He also said he had told Japan’s Prime Minister Shinzo Abe he was
“concerned” about Ghosn’s ongoing detention.
The tycoon has repeatedly sought release on bail to no avail, with the
courts ruling he is a flight risk and could tamper with evidence if freed.
BSS/AFP/HR/1210