Nissan faces $22M fine in Japan for underreporting ex-boss’ pay

by Editorial Team

Japanese officials have recommended a roughly $22 million fine against Nissan for underreporting its disgraced former boss Carlos Ghosn’s compensation.

Japan’s Securities and Exchange Surveillance Commission proposed fining the automaker about 2.4 billion yen over alleged misreporting from 2014 to 2018, officials said Tuesday.

The fine would be Japan’s second-largest ever for false reporting on a corporate financial statement. The nation’s Financial Services Agency will ultimately decide whether to impose it.

Tokyo prosecutors have arrested ex-Nissan chairman Ghosn four times amid a probe of his alleged financial misconduct as the automaker’s leader.

The accusations include claims that Ghosn underreported his salary by about 9.1 billion yen, or about $83.8 million, over nearly a decade and temporarily moved his personal financial losses to Nissan’s books. He has denied wrongdoing.

Nissan is not liable for misreporting prior to the financial year that started in April 2014 because of the statute of limitations, a Securities and Exchange Surveillance Commission official said at a press briefing.

The automaker said it takes the commission’s recommendations seriously.

“We express deepest regret to stakeholders for any trouble caused,” Nissan said in a statement. “We will continue efforts to strengthen governance and compliance including ensuring accuracy of corporate information disclosure.”


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