AutoBeta(AutoBeta.net)06/28 Report--

Nissan disclosed in a document on Thursday that it would cancel unpaid benefits from former chairman Carlos Ghosn, including 4.44 billion yen ($41 million) in unpaid pension and 2.27 billion yen in stock appreciation rights, according to foreign media reports. And the current CEO Nishikawa Hiroshi is willing to take a 50% pay cut to make up for the impact on Nissan because of reported financial violations.

According to Nissan documents, Ghosn's total compensation for the last fiscal year reached 1.65 billion yen, of which 410 million yen was actually paid and 1.24 billion yen was deferred to retirement.

Mr Ghosn was arrested in Tokyo in November and charged with financial irregularities, underreporting Nissan's pay by about Y9.1 billion ($84.71 million) over nearly a decade and transferring personal investment losses to Nissan. Since then, Ghosn has been accused of making about $5 million in private interests in the name of Nissan. Ghosn denies all the charges.

Compensation is a key issue in the charges against Mr Ghosn, whose arrest destabilized the Nissan-Renault-Mitsubishi tripartite alliance he founded. Ghosn denied all discounts to him, including understating his salary.

It was earlier reported that the Japan Securities and Exchange Regulatory Commission (SESC) recommended a fine of up to 4 billion yen ($37 million) on Nissan on the grounds that Ghosn understated his salary and had a significant impact on investor decisions. A SESC spokesman declined to comment on the situation, and Nissan could not immediately comment.

According to sources, SESC is expected to formally launch an investigation at the end of this month, when Nissan's latest annual filings will be reviewed. If Nissan voluntarily submitted documents to the SESC before the formal investigation began, and admitted that the previous report was incorrect, the fine it faced could be reduced to 2.4 billion yen.

It is reported that the fine will only apply to Nissan's failure to report in the four years to March 2018, and Nissan will not be responsible for the failure to report before that period because of the statute of limitations.

The Japanese Securities and Exchange Regulatory Commission has a four-year fine investigation into Nissan until March 2018. Due to the statute of limitations, Nissan was not responsible for underreporting Ghosn's salary before this period.

Greg Kelly, a former Nissan director who was arrested on the same day as Ghosn in November 2018, also reported the Nishikawa people.

Because of suspected financial irregularities, Nishikawa Hiroshi changed the execution date of the stock from May 14 to May 22 in 2013, while Nissan's share price rose about 10% and is expected to make an additional profit of 47 million yen. At the same time, Nishikawa Hiroshi is also suspected of using company funds to buy houses.

Since Ghosn's arrest in November 18, the leadership of the Nishikawa people has been questioned. In 2018, Nissan reported full-year revenue of 11.57 trillion yen, down 3.2% from a year earlier, operating profit of 318.2 billion yen, down 44.6% from a year earlier, and Nissan's global sales of 5.516 million vehicles, down 4.4% from a year earlier.

Hiroshi Nishikawa has apologized to shareholders for the impact of the Ghosn scandal, saying: "We apologize for any inconvenience caused by this financial misconduct." In addition, he will cut his salary by 50 per cent for the current fiscal year ending March 31, 2020, partly to make up for the impact of the scandal, bringing his annual salary down to 200 million yen.

In addition, Hiroshi Nishikawa said at the annual shareholders' meeting that he hoped the company would speed up the search for suitable CEO candidates. "under the new nominating committee, I personally hope that the committee will consider not only me, but also the next generation of leaders." "I hope the committee will speed up its preparations so that we can hand over power to a new generation of leaders," he said. I will be very cooperative and make suggestions to achieve this goal. "

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