{"id":141794,"date":"2019-12-10T16:37:00","date_gmt":"2019-12-10T21:37:00","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=141794"},"modified":"2019-12-10T16:44:41","modified_gmt":"2019-12-10T21:44:41","slug":"nissan-to-get-hit-with-22m-fine-for-underreporting-ghosns-compensation","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2019\/12\/nissan-to-get-hit-with-22m-fine-for-underreporting-ghosns-compensation\/","title":{"rendered":"Nissan to Get Hit With $22M Fine for Underreporting Ghosn’s Compensation"},"content":{"rendered":"
\"\"<\/a>
Nissan underreported the compensation of former Chairman Carlos Ghosn. It will be fined $22 million for doing so.<\/figcaption><\/figure>\n

A Japanese government agency recommended a 2.4 billion yen fine for Nissan Motor Co. Ltd. because the automaker underreported the compensation of Carlos Ghosn, the automaker\u2019s former chairman and CEO, for four years.<\/p>\n

The fine, about $22 million, is the second-largest ever assessed in Japan behind the 7.3 billion yen penalty given to Toshiba Corp. in 2015, according to Reuters.<\/p>\n

The Securities and Exchange Surveillance Commission, Japan\u2019s watchdog group for its securities markets, said the fine covers from April 2014 to March 2018. Due to the statute of limitations it cannot be longer, SESC officials told the media.<\/p>\n

<\/p>\n

(Nissan shutting down some U.S. operations for two days in January)<\/strong><\/em><\/a><\/p>\n

The SESC, Japan\u2019s version of the Securities and Exchange Commission in the U.S. although it cannot bring charges against companies, reports to the Financial Services Agency, Japan\u2019s financial regulator, which will make a final decision on the fine.<\/p>\n

\"\"<\/a>
Stephen Ma, Nissan’s next CFO, reviewed the automaker’s disappointing Q2 earnings.<\/figcaption><\/figure>\n

\u201cWe express deepest regret to stakeholders for any trouble caused,\u201d Nissan said in a statement, noting it took the recommendation seriously. \u201cWe will continue efforts to strengthen governance and compliance including ensuring accuracy of corporate information disclosure.\u201d<\/p>\n

Ghosn was arrested in November 2018, taken from his private jet just after it landed when he arrived in Japan for meetings with Nissan officials. Ghosn who was charged with understating his salary. He has consistently denied the charges, maintaining his innocence.<\/p>\n

The automaker has been struggling seemingly since the incident occurred. Sales have been the decline steadily and it has quarterly earnings have been missed targets while the company restated its earnings forecasts twice.<\/p>\n

(Nissan Q2 operating profit falling more than 70 percent)<\/strong><\/em><\/a><\/p>\n

Now Nissan has a new chief executive, Makoto Uchida, who pledged on his first day to \u201cregain trust\u201d and \u201crestore business performance\u201d to the automakers. Uchida had been serving as the automaker\u2019s head of Chinese operations<\/p>\n

Though Uchida declared that \u201cNissan is on the right path to recovery,\u201d he acknowledged that \u201cit might be a gradual process.\u201dIn his comments to Nissan employees, Uchida appeared to be signaling a desire to mend fences, saying his goals \u201cwill include the building of alliance partnerships.\u201d<\/p>\n

\"\"<\/a>
The 53-year-old Makoto Uchida said he’s looking to restore trust and faith in the automaker as he goes forward.<\/figcaption><\/figure>\n

It is unclear, at this point, if he will continue his predecessor\u2019s push to have Renault reduce both its 43.4% stake in Nissan and its ability to control key executive and board appointments.<\/p>\n

A key attribute of Uchida, sources said, is his ability to view things from a more global perspective than traditional Japanese executives like Saikawa. The Reuters news service quoted one insider describing the incoming chief executive as a \u201cforeigner with a Japanese face.\u201d<\/p>\n

(New Nissan CEO aims to \u201cregain trust,\u201d \u201crestore business performance\u201d)<\/strong><\/em><\/a><\/p>\n

His impact is already being felt in North America where he plans to down its plants for two days hoping to help the automaker recoup some costs. The company has been trying to cut costs after its\u00a0profit plunged this fiscal year. A stronger yen has combined with falling sales in China and the United States, pushing the automaker to cut its forecast for operating income to an 11-year low.<\/p>\n","protected":false},"excerpt":{"rendered":"

A Japanese government agency recommended a 2.4 billion yen fine for Nissan Motor Co. Ltd. because the automaker underreported the compensation of Carlos Ghosn, the automaker\u2019s former chairman and CEO, for four years. Check out the story at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":135328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,11,13],"tags":[],"make":[90],"post-state":[],"category_old":[118,286,150,151,123,287,133,131,289,299,138,132,284,189,125,124,121,139,148,290,128,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/141794"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=141794"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/141794\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/135328"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=141794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=141794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=141794"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=141794"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=141794"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=141794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}