Nissan is on the hook for $15 million of the settlement, while Ghosn will pay $1 million.
The Asahi Shimbun via Getty Images
(Updated: 12:16 PM EST, 9/23/2019)
Topline: The Securities and Exchange Commission (SEC) said Monday that Nissan and former CEO Carlos Ghosn will pay $16 million to settle charges of false financial reporting, claiming Ghosn “engaged in a scheme to conceal more than $90 million of compensation from public disclosure, while also taking steps to increase [his] retirement allowance by more than $50 million.”
- The SEC alleged that Nissan, Ghosn and Greg Kelly (another executive) failed to publicly disclose $140 million of retirement compensation for Ghosn.
- Nissan is on the hook for $15 million of the settlement, while Ghosn will pay $1 million. Kelly will pay $100,000.
- As part of the settlement’s terms, Nissan, Ghosn and Kelly are not “admitting or denying the SEC’s allegations.”
- This isn’t the end of Ghosn’s legal troubles. He still faces charges by Japanese authorities that he abused corporate trust, failed to report $80 million of income and had Nissan take on one of his personal debts.
- “We are pleased to have resolved this matter in the U.S. with no findings or admission of wrongdoing,” wrote Ghosn’s legal team in an emailed statement. They added that Ghosn will “continue to contest and deny” the charges against him in Japan.
- Nissan is working to recover from the fallout. Its profits have dropped significantly. As a result, Nissan said in July it would have to cut 12,500 jobs.
Key background: Before the Nissan scandal came to light, Ghosn was a legendary auto executive. He’s been credited with turning around business for multiple carmakers, including Nissan and Renault. By 2016, Ghosn was chairman of Renault, Nissan and Mitsubishi Motors. It all came crashing down in November 2018 when he was arrested in Japan. Since then, Japanese authorities arrested him three more times. Ghosn is out on bail and is awaiting trial in Tokyo.
