Carlos Ghosn, chairman of Japanese automaker Nissan, under-reported nearly 10 billion yen ($88.70 million) in compensation as nearly 5 billion yen, Jiji news agency reported Monday. Ghosn was found to have under-reported between 2011 and 2016, Kyodo news agency reported.
Ghosn, 64, was arrested, early Monday after the Japanese automaker said that Ghosn had used company money for personal use and that it had been investigating possible improper practices of Ghosn and Representative Director Greg Kelly for several months.
Nissan said it planned to axe Ghosn - and Kelly, after the company's proposed meeting with CEO Hiroto Saikawa, scheduled for late Monday.
“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 Carlos Ghosn’s compensation,” Nissan said in a statement.
Renault, which also lists Ghosn as its chairman, had its shares drop 13 percent in Paris to be among the worst performing stocks in Europe. Nissan’s German-listed securities fell 12 percent.
Ghosn's alleged misconduct comes as a surprise to the Japanese automotive firm, who has been lauded for saving Nissan from the brink of bankruptcy.
Neither Ghosn, nor Renault could be reached for comment, although Nissan do have a press conference scheduled for 9:00pm local time.