Tuesday 19 November 2019

SEC latest to open probe into Nissan pay

Carlos Ghosn
Carlos Ghosn

Neil Weinberg, David Voreacos and Matthew Campbell

The US Securities and Exchange Commission (SEC) is investigating whether Nissan accurately disclosed its executive pay in the US, according to several people familiar with the matter.

The US financial regulator is examining whether Nissan's executive-pay disclosures were accurate and whether the carmaker maintained adequate controls to prevent improper payments, the sources said.

Nissan, in response to questions, confirmed it has received an inquiry and said it is co-operating fully. The company said it could not provide further details. Nissan shares fell as much as 2.7pc in Tokyo trading - their biggest intraday decline in three weeks.

The SEC investigation adds to scrutiny surrounding Japan's second-largest carmaker and its executives after Japanese authorities arrested Carlos Ghosn, Nissan's then-chairman, and another company director, Greg Kelly, in November.

Both men were indicted there over allegations that Mr Ghosn had under-reported his income at Nissan by tens of millions of dollars. The carmaker also has been indicted, a step that allows prosecutors in Japan to lay formal charges.

Mr Ghosn and Mr Kelly were arrested after a months-long internal investigation at Nissan uncovered what the company said were financial misdeeds by Mr Ghosn. Both Mr Ghosn and Mr Kelly deny wrongdoing. The SEC inquiry is focused on whether lapses by Nissan in reporting its executives' pay violated US securities law, one of the people said.

Bloomberg

Irish Independent

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