KAZUHIRO NOGI/AFP/Getty Images
Industryweek 35985 Ghosn Nissan Ceo Japan Kazuhiro Nogi Afp Getty Images

Nissan, Ghosn Fined $16 Million for Failing to Disclose Pay

Sept. 23, 2019
Ghosn was personally fined $1 million for allegedly failing to disclose compensation to investors.

Nissan Motor Co. and Carlos Ghosn will pay a combined $16 million to settle a U.S. regulator’s allegations that they failed to disclose more than $140 million in compensation that the automaker’s ex-chairman was slated to receive in retirement.

Nissan was fined $15 million, while Ghosn, 65, was hit with a $1 million penalty, the Securities and Exchange Commission said in a Monday statement. The claims stem from a decision that allegedly gave Ghosn broad authority over pay decisions: Starting in 2004, the board delegated to him power to set compensation for executives and directors, including his own.

That led to Ghosn, with substantial assistance from his subordinates, excluding more than $90 million in compensation from Nissan’s public disclosures to investors, the SEC said. Ghosn also took steps to increase his retirement allowance by $50 million, according to the regulator.

The SEC also reached a settlement with former Nissan director Greg Kelly, who agreed to pay a $100,000 fine over allegations that he helped Ghosn hide pay. Ghosn was barred from serving as a director or officer of a public company for 10 years, while Kelly agreed to a five-year ban. Nissan, Ghosn and Kelly, 63, all resolved the cases without admitting or denying wrongdoing.

Nissan said in a statement that it cooperated fully with the SEC and has “‘promptly implemented remedial acts to prevent recurrence.”

Lawyers for Ghosn and Kelly said the decision to settle with the SEC should have no bearing on separate Japanese cases against their clients.

“Greg is a guy with limited resources,” said James Wareham, a Washington-based attorney for Kelly. He said that his client settled so that he can concentrate on the case he faces in Japan.

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!