5/20/2019

Report: Nissan CEO Won’t Be Charged in Ghosn Pay Scandal

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Nissan Motor Co. CEO Hiroto Saikawa reportedly won’t be charged by Japanese prosecutors for his role in allowing years of underreported compensation for former Chairman Carlos Ghosn.

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Nissan Motor Co. CEO Hiroto Saikawa won’t be charged by Japanese prosecutors for his role in allowing years of underreported compensation for former Chairman Carlos Ghosn, sources tell Kyodo News.

Ghosn was arrested in November and later charged along with Nissan with violating corporate laws by underreporting 9 billion yen ($82 million) in deferred compensation over eight years.

Kyodo cites investigative sources who say Saikawa admitted to prosecutors in December that he had signed a document promising to pay Ghosn the compensation. The payment, which was never included in securities reports, was to be made when Ghosn, currently 65, retired.

At the time, Saikawa told investigators he didn’t ponder signing the document because he assumed the deal had already been vetted.

Saikawa’s name also has appeared on securities reports dating to fiscal 2016 that failed to mention the deferred compensation. He was named to succeed Ghosn as Nissan’s CEO in 2017.