AutoBeta(AutoBeta.net)09/05 Report--

Nissan CEO Hiroshi Nishikawa is suspected of adding 47 million yen (3.16 million yuan) to his salary by adjusting the terms of the performance bonus, in violation of the company's rules, Japan's Jiji news agency reported. Hiroshi Nishikawa admitted wrongdoing on the issue of stock-related compensation and said he would refund some of the miscollected compensation.

In November 2018, Ghosn, former chairman of Renault Nissan, was arrested on suspicion of financial irregularities. Also arrested was Nissan's representative director Kelly. Ghosn and Kelly are accused of conspiring to conceal Ghosn's true salary for five years from fiscal year 2010. On December 10, prosecutors in Tokyo, Japan arrested and charged Ghosn, and Nissan was charged with falsifying its annual report that day.

According to the report, an internal investigation by Nissan found that Hiroshi Nishikawa received an additional income of tens of millions of yen through a stock appreciation rights plan, far more than he should have received. On the morning of September 5, Hiroshi Nishikawa said, "I am deeply sorry that this matter has aroused concern." However, Hiroshi Nishikawa denied that he had intentionally abused his power to cause the improper payment, saying that he "thought that the operation at that time was in line with the company's procedures and mistakenly thought that his secretariat had properly dealt with the problem."

The company has been trying to strengthen governance, cut costs and boost weak profitability. Ghosn, who has been accused of financial misconduct during Japan's second-largest carmaker's 20-year rule, is awaiting trial in Japan on charges including paying $5 million in bribes to Nissan. But Ghosn denied any wrongdoing and said he was the victim of a board coup.

Now Hiroshi Nishikawa admits that misconduct has further undermined confidence in him. Mr. Nishikawa was widely criticized for his close ties to the sacked former chairman, Ghosn, who was accused of financial misconduct but said he was the victim of a coup on Nissan's board of directors. Although Mr Nishikawa has promised to improve corporate governance and the alliance between Nissan and Renault, his leadership has been questioned.

Nissan declined to comment on reports of misconduct by Hiroshi Nishikawa.

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