Nissan Motor Co., Ltd. (NSANY) Accused of Understating Executive Compensation to Avoid Shareholder Scrutiny
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between December 10, 2013 and November 16, 2018, Nissan Motor Co., Ltd. (NSANY) understated its expenses and overstated its profits by concealing half of the annual executive compensation it was obligated to pay to its former Chief Executive Officer and Chairman of its Board of Directors, Carlos Ghosn. Over the last ten years, while emphasizing the company’s “strong ethics” and “high transparency”, Nissan underreported Ghosn’s true pay by an estimated ¥10 billion. In fact, Nissan disregarded the express direction of its outside auditors dating back to at least 2013, to accurately report its executive compensation, and ignored the cap Nissan’s shareholders placed on CEO pay at Nissan. On November 19, 2018, investors learned that Ghosn and Greg Kelly, former Senior Vice President and alleged mastermind behind Ghosn’s exorbitant compensation, had been arrested and jailed for violating a Japanese law that prohibits false financial filings. On this news, Nissan’s shares fell nearly 5.5% on November 19, 2018.
Nissan Motor Co., Ltd. (NSANY) Shareholders Have Legal Options
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