Carlos Ghosn, Nissan chairman and Renault CEO, to be removed after Nissan alleged 'significant' financial misconduct' over many years.
- Nissan says it will oust Renault CEO Carlos Ghosn "serious act of misconduct."
- 'Over many years,' Nissan alleged, Ghosn and another board member misrepresented salaries, while Ghosn also used company assets for personal use.
- Follow Renault's share price on Markets Insider.
Carlos Ghosn, chairman of Nissan and CEO and chairman of Renault, is set to be removed from Nissan after the car company said it uncovered "significant acts of misconduct."
Renault's shares, listed in Paris, plummeted after Nissan confirmed reports of its chairman's alleged misconduct. The stock was down as much as 14% on the news, reaching a 2014 low.
Ghosn, 64, and Representative Director Greg Kelly had been officially reporting lower compensation "to reduce the disclosed amount," Nissan said in a statement. Ghosn also used company assets for personal use, Nissan alleged.
"As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director," Nissan said in the statement. "Saikawa will also propose the removal of Greg Kelly from his position as Representative Director."
Earlier Monday, Japan's Asahi News reported that Brazil-born Ghosn was to be arrested following an alleged violation of Japan's financial instruments and exchange act.
Nissan confirmed the subject of the investigation Monday and said it was cooperating with prosecutors. One Japanese media outlet, Yomiuri Shimbun, reported Monday that Ghosn has now been arrested.
Ghosn stepped down as CEO of Nissan in 2017. Since 1999 Nissan has been part of the Renault-Nissan-Mitsubishi Alliance. Renault's shares, already been battered by the US-China trade war, and are down about 33% this year.
"Nissan deeply apologizes for causing great concern to our shareholders and stakeholders," the company said.
See Nissan's full statement below:
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