“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. The Japanese automaker said that based on a whistleblower report, it had been investigating possible improper practices of Ghosn and Representative Director Greg Kelly for several months, and that it was fully cooperating with investigators. “I am not in a position to talk about the progress of the investigation itself, but as a result of the investigation, we heard that the arrests have been made of the two gentlemen,” CEO Hiroto Saikawa told a news conference in the company headquarters in Yokohama. Nissan said its internal investigation also found “numerous other significant acts of misconduct … such as personal use of company assets.”

As a result, CEO Saikawa will propose to Nissan’s board of directors to “promptly remove Ghosn from his positions as chairman and representative director,” at a meeting on Thursday, the company said. Renault shares tumbled more than 10 percent in Paris, while Nissan's German-listed securities fell almost 10 percent. “We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”

Ghosn is also chairman of Mitsubishi Motors. He joined Nissan in 1999 after Renault bought a controlling stake and became its CEO from 2001 until 2017, engineering a similar turnaround there and earning the nickname “Le Cost Cutter.”

Ghosn stepped down as Nissan CEO last year but remained chairman of the company.
Nissan chairman and former CEO Carlos Ghosn is arrested in Japan for breaching the country's financial trading laws, prompting Nissan to recommend that he and director Greg Kelly step down for misconduct. Ghosn is also the chairman and CEO of Renault.