Ghosn is well regarded for having turned Nissan around from near bankruptcy. Photo credit: REUTERS
UPDATED: 11/19/18 6:01 am ET — adds details
TOKYO – Nissan Motor Co. is preparing to fire Chairman Carlos Ghosn for allegedly under-reporting his income and using corporate assets for personal use, a company spokesman said.
CEO Hiroto Saikawa, 65, will recommend to the automaker’s board of directors that Ghosn be dismissed, Nissan spokesman Nicholas Maxfield said Monday in Japan.
The company is also planning to fire fellow board member Greg Kelly, who rose through the executive ranks as a director of human resources.
Ghosn, 64, one of Japan’s highest-paid executives, is believed by Nissan to have under-reported his income over multiple years and misused corporate assets. Kelly was “deeply involved” in the scheme, Maxfield said. Nissan did not say who would replace Ghosn as chairman nor when the board of directors would decide to remove him.
Japanese media reported earlier that the Tokyo District Public Prosecutors Office was preparing to arrest Ghosn about possible violations of the country’s financial laws. Japan’s Yomiuri newspaper reported on its website that Ghosn had already been arrested mid-evening.
Japanese media reported that Ghosn under-reported his income by millions of dollars. Nissan would not immediately comment on the magnitude of the alleged under-reporting.
Nissan was expected to hold a news conference about the allegations later Monday at its global headquarters in Yokohama, just south of Tokyo.