Carlos Ghosn resigns from Renault

Carlos Ghosn, currently held in prison in Japan on allegations of fraud, has resigned as chief executive and chairman of Renault, having already been dismissed from his leadership role at Nissan

Ghosn, who was also chairman of Nissan, was unexpectedly arrested by the Japanese authorities in November last year. Nissan removed Ghosn from his executive position immediately.

He has been indicted for violating the Japan Financial Instruments and Exchange Act, by making false disclosures relating to the executive’s pay in annual securities reports and for understating his remuneration package.

Japanese prosecutors claimed that both Nissan and Ghosn underreported his compensation on company financial reports over five years.

Ghosn was actually paid ¥1.78bn (£12.4m) in the year ended March 2011 but Nissan reported only ¥982m, the indictment alleged. For the four years from April 2011 to March 2015, Ghosn’s actual compensation was ¥8.08bn but Nissan reported only half that amount, prosecutors claimed.

Ghosn, who has always denied the charges against him, is seeking bail from prison where he has spent the last two months, as does Greg Kelly, another executive on his leadership team.

Ghosn also headed up the Renault-Nissan-Mitsubishi Alliance. Following the announcement that Renault has removed Ghosn from its board, Nissan put out a statement which said: ‘Nissan Motor Co., Ltd. today announced that it has begun preparations to hold an extraordinary general meeting of shareholders, targeting mid-April 2019. The agenda is to be limited to the discharge of directors Carlos Ghosn and Greg Kelly, and the appointment of a new director to be nominated by Renault.’

Report by Pat Sweet

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