Carlos Ghosn, former Chairman of Nissan Motor Company/Bloomberg
Japan’s securities regulators said that Nissan Motor Corporation is set to be fined JPY 2.4 billion ($22 million) for underreporting former Chairman Carlos Ghosn’s compensation, reported Bloomberg.
The Securities and Exchange Surveillance Commission made the recommendation just over one year after Ghosn’s arrest, which shocked the auto industry and triggered turmoil at the Japanese automaker and its alliance partner, Renault.
Nissan is struggling to chart a path to growth after announcing a plunge in profitability to decade lows and 12,500 job cuts and replacing top management.
In September 2019, the Securities and Exchange Commission settled with Nissan and Ghosn over claims that they failed to disclose more than $140 million in pay. Nissan will pay the US regulator $15 million while Ghosn was hit with a $1 million penalty as part of the settlement.
The Japanese watchdog claimed Nissan violated the country’s financial instruments law by underreporting remuneration through March 2018. Nissan had asked for the fine to be reduced from an initial JPY 4 billion.