A new bit of Nissan news is shaking up the company’s leaders and is seeing its stock drop today.
Nissan (OTCMKTS:NSANY) announces through its official Nissan News platform that Representative Director and Chairman Carlos Ghosn is leaving the company. Ghosn is being fired from Nissan over reports of “significant acts of misconduct.”
According to the Nissan News release, Ghosn has been under investigation for the last few months concerning his compensation. It found that he has been regularly reporting lower compensation than what he received for years now.
These aren’t the only claims of misconduct that the Nissan News release mentions. The company also notes that claims against the Chairman include “personal use of company assets.”
It isn’t just Carlos Ghosn that is being fired from Nissan over these issues. The Nissan News release also notes that Representative Director Greg Kelly was also deeply involved in the cases of misconduct involving Ghosn.
“As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director,” Nissan says in a statement. “Saikawa will also propose the removal of Greg Kelly from his position as Representative Director.”
The cases of misconduct isn’t just seeing Carlos Ghosn fired from Nissan. He was also arrested today. Nissan says that it will be working with Japanese prosecutors. It’s unknown how this will affect Renault (OTCMKTS:RNLSY), which Ghosn is the CEO of.
NSANY stock was down 5% and RNLSY stock was down 8% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.