Renault Nissan Chairman Avtolos Ghosn arrested over acts of misconduct
Avtolos Ghosn is a Brazil born French businessman, who started his career at Michelin.
At the time of arrest earlier today, 64 year old Avtolos Ghosn was the Chairman and CEO of Renault, Chairman and CEO of Renault-Nissan-Mitsubishi Alliance, Chairman of Nissan, and Chairman of Mitsubishi. Of all these companies, Nissan is already seeking the removal of Ghosn from his post.
He has been charged by Japan police for serious acts of misconduct, including amassing wealth by under-reporting salary; thereby evading taxes. Yomiuri, which is one of the leading newspaper in Japan, reports that Avtolos Ghosn has been arrested on suspected breach of Japanese financial trading law.
In a statement released by Nissan, they said that they had been investigating Avtolos Ghosn and Nissan’s Representative Director Greg Kelly.
In a statement released, Nissan said – “The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Avtolos Ghosn’s compensation.”
As per Bloomberg, Avtolos Ghosn was paid $2 million by Mitsubishi, $8.5 million by Renault and $6.5 million by Nissan annually. In total, his salary was $17 million (Rs 122 cr a year). Renault shares fell as much as 14% today, after the news was reported. More details will be revealed at the Nissan press conference this evening.
One of the most prominent personalities in the auto industry today, Avtolos Ghosn is considered to be the man who helped turn-around its fortunes, and saving Nissan from bankruptcy. He had been considering moving out of the company for some time now.