Renault shares plummet as chairman Carlos Ghosn arrested after financial misconduct investigation
Shares in Renault plunged 10 per cent this morning as the car manufacturer's chairman and chief executive was arrested on suspicion of under-reporting his salary.
Carlos Ghosn, who is also chairman of car manufacturer Nissan, is being investigated by Japanese authorities and has been arrested by prosecutors, according to Reuters.
In a statement Nissan said it had been conducting an internal investigation into "serious misconduct" by Ghosn and representative director Greg Kelly following a whistleblower's report.
The investigation concluded Ghosn had been under-reporting his salary and had committed other offences including personal use of company assets.
"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.
"Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed."
“Nissan deeply apologises for causing great concern to our shareholders and stakeholders,” the company added.
“We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”
The company said it is co-operating with prosecutors' own investigation.
It said Nissan’s chief executive, Hiroto Saikawa, will recommend to the board that Ghosn is removed from his role as chairman.
Ghosn joined Nissan in 1999 and took over as chairman and chief executive officer in 2001 after leading a successful turnaround. In 2005 he became chief executive of Renault and oversaw the move to partner with Mitsubishi in 2016, forming the Renault-Nissan-Mitsubishi Alliance.