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Nissan to freeze payments of unstated remuneration to Ghosn

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Why does Nissan think that Ghosn spent without approval? If there was a problem why did they not say something? You can't sue someone over something when you did you protest in the first place.

9 ( +22 / -13 )

FREE GHOSN!!!!

17 ( +29 / -12 )

Nissan as a company has also been indicted on the charge.

And just who is going to take the fall?

5 ( +18 / -13 )

They can try, but isn't a contract legally binding? Myself and several other people I know have discovered that a Japanese contract is binding on myself but not on the company that also signed it. So it's fairly normal for a company to backpedal, change, twist an apparently legal useless piece of paper. Even the Ministry of Labour will back a company before a worker. So this one, as he actually has the funds will play out in court, exposing the absurdity of the System further.

9 ( +18 / -9 )

If there was a problem why did they not say something? You can't sue someone over something when you did you protest in the first place.

Who are they? Nissan is a corporation that has no voice of its own. It relies exclusively on its two listed representative directors to act on its behalf and in its best interest. Those two representative directors were Carlos Ghosn and Greg Kelly.

Regardless of whether other Nissan employees might have been aware of the conduct or even approved of it, this doesn't excuse the fiduciary duties owed by Ghosn and Kelly to Nissan and its shareholders. Legally the buck stops with them and them alone.

8 ( +19 / -11 )

They're freezing the money, he's legally entitled to, from the job contract he signed with lawyers when he started 20 years ago.. Talk about desperate times at Nissan, strapped for cash or declining sales again ay...

7 ( +20 / -13 )

All time low, lower than a lowrider Nissan GTR

2 ( +14 / -12 )

Besides spending the time to dig out dirt about Ghosn (the guy who saved the company) and trying to prove that he's bad and they are not, does Nissan's management actually have any time and energy left to built cars?

5 ( +18 / -13 )

Ghosn doesn't stand much chance against the combined efforts of Nissan, the police and the judiciary.

19 ( +25 / -6 )

So Japanese contracts don't mean anything either! Nissan signed, they need to pay. Where is it illegal to buy a luxury home as well? This just sounds petty and vindictive

1 ( +15 / -14 )

Well, given that they have alleged that virtually everything Ghosn has done was illegal / unauthorized / not approved, this comes as no surprise. They can't very well pay something out that they allege Ghosn should not receive.

So, basically, they are sticking to their story and their allegations. And will force Ghosn to prove otherwise.

Which, of course, Japan Inc. is doing their darn best to make sure he can't do so by keeping him detained and not allowing him the time and freedom to prepare for his defense.

What a sham!

Ghosn doesn't stand much chance against the combined efforts of Nissan, the police and the judiciary.

Indeed! Sort of like China. Japan must be proud! I suppose, though, that at least he won't get executed in Japan for alleged financial misdeeds!

6 ( +16 / -10 )

@Kobe White Bar Owner - FREE GHOSN!!!!

At least until his trial. Interesting how the company has also been indicted, but no other executives have been arrested.

8 ( +16 / -8 )

Look Indicting the entire company. You might as well fire everyone that worked for Nissan till now if you are going to do that. I mean I don't see anyone apologizing their way out of this one. They didn't think this through when they kidnapped Ghosn. They just made everyone think 'screw signing contracts', they would have to prove the contracts were invalid to begin with and then indict all the lawyers that helped forge the document. He apparently illegally saved the company money while he was at it.

-2 ( +9 / -11 )

In stopping the payments Nissan have demonstrated that the payments to Ghosn were not finalised, destroying the prosecution's case. They have also proved that Ghosn is telling the truth and Saikawa is lying.

11 ( +22 / -11 )

A new slush fund for Saikawa to redecorate the Copacabana apartment to his taste.

-6 ( +8 / -14 )

Nissan is also considering filing a damages suit against the former boss

Yes Nissan execs, show the world your moral high ground. Show us what J justice looks like. You’re on a roll!

8 ( +17 / -9 )

Free Ghosn!

He made Nissan what it is today, from perpetual mediocrity to one of its biggest success stories.

7 ( +18 / -11 )

Lol. And sigh...we just need to wait until we can hear Goshn's side in court but I have a feeling that will hushed up like a nuclear launch code!

I think everyone who works here knows that contracts in Japan only mean something when the 'Company' has an issue or needs to alter the deal.

13 ( +22 / -9 )

Wait - He's being held on charges of under-reporting his income, and his argument is that he had not yet received the income, and now it looks like he won't, and if that is the case, he didn't under-report his income, so why is he still being held? Am I missing something here?

16 ( +26 / -10 )

Nissan's board decided to nominate Renault Chairman Jean-Dominique Senard as its new member

I hope Mr. Senard is wearing some strong body armor to protect himself from the inevitable knife in the back...

3 ( +12 / -9 )

They're going to freeze payments of unstated remuneration? That's about the most oxymoronic statement I've ever read. How can you freeze something that's unstated? Unless, of course, it's been 'stated'. Sheesh!

10 ( +20 / -10 )

Okay, wow. I don't understand. Nissan is saying they shouldn't have agreed to pay him some certain amount and Ghosn is the bad guy?

2 ( +12 / -10 )

From a corporate governance (CG) point of view, the Nissan shareholders should sue the entire company for a total lack of CG, and total mismanagement; but then the major shareholders are behind this. Let's just see how this plays out.

6 ( +13 / -7 )

The car manufacturer will list the payments in its third quarter statement next Tuesday despite having no intention to pay them, according to reports by The Japan Times.

Hummm... This sounds like something the Prosecutors asked Nissan to do so they can insist the payments amounts were already firmly decided.

I can hear the Prosecutors now "See, Nissan even published the deferred remuneration! We really do have a case. Beleive us!"

3 ( +11 / -8 )

So let me get this right..... having accused Ghosn of under-reporting compensation that he says was unsettled, the company is now going to withhold that compensation, thereby surely proving his point that it was unsettled, AND is going to report the compensation in their earnings report. Even though they are not going to pay it. Unbelievable.

8 ( +19 / -11 )

@Laguna - the allegation is that Nissan under-reported his future compensation in earnings reports, not that Ghosn personally under-reported on his own tax returns. He's accused of being responsible for Nissan's under-reporting.

-6 ( +8 / -14 )

It seems that Nissan changed the charges. Offensive strategy ?

-7 ( +2 / -9 )

Nissan as a company has also been indicted on the charge.

Well at least Nissan aren't getting away scot free!

13 ( +13 / -0 )

Laguna, TrevorPeace, Scrote,

You all make logical points, however, we are in the twilight zone that is Japan.

0 ( +10 / -10 )

Indeed! Sort of like China. Japan must be proud! I suppose, though, that at least he won't get executed in Japan for alleged financial misdeeds!

Even if he's executed, it would be called "perpetual peace" or some other euphemistic expression.

-2 ( +7 / -9 )

So let me get this right..... having accused Ghosn of under-reporting compensation that he says was unsettled, the company is now going to withhold that compensation, thereby surely proving his point that it was unsettled, AND is going to report the compensation in their earnings report. Even though they are not going to pay it. Unbelievable.

@ADK99 - My thoughts exactly. This is surreal.

-2 ( +7 / -9 )

"The Japanese automaker plans to book 9 billion yen in additional pay to Ghosn in its earnings report to be released next Tuesday without actually disbursing it..." This is not "freezing" money, it is accounting sleight of hand to keep Nissan's books balanced and avoid tax trouble. If the money had not been previously allocated, what was the basis of the original charge? If the money has not yet been paid, how could he be charged with evading taxes on it?

0 ( +10 / -10 )

Prosecutors really have nothing, just hearsay and a directive from the government to "get him" He won't confess and prosecutors are denied their only real tool they have. Investigation proof that's a little out of their comfort zone. Yet to see a mass of suited, gloved prosecutors carry multiple boxes out of a prearranged raid on Nissans head office?

-1 ( +8 / -9 )

Nissan is not just one person. It's a corporate entity. Nissan as a whole is responsible and should pay heavy fines in the billions range for any gross negligence. Ghosn has other shareholders he must answer to as well.

0 ( +8 / -8 )

Free him.

He is a corrupt, lying, cheating suspect. But it is OK. He is a good role model for business. Cheat, lie and steal and you can be so rich. We are talking private jets. Don’t care about laws and rules, do anything to gain the fruits of greed.

-12 ( +6 / -18 )

Ghosn is going down as one of the greatest fall guys in history. Regardless of whether he committed the crimes he is accused of or not, the fact that the Japanese government isn’t holding Nissan accountable is the strangest thing ever. Regardless of what they keep finding. It all keeps pointing to Nissan knowing and ignoring.

How can individuals that don’t read or write Japanese be capable of pulling huge accounting schemes for 10 years? Furthermore, how can the accounting department not know about any of this? Innocent or guilt of Ghosn is no longer the issue. The much larger issue is that the company defrauded investors for years and buried information or turned a blind eye to the misdealings in the name of profit.

2 ( +11 / -9 )

Ghosn doesn't stand much chance against the combined efforts of Nissan, the police and the judiciary

Well its just not the combined efforts of Nissan, the police and the judiciary, there must be french connection too, and that's the reason he is still in detention. It takes time to get rid of a chief executive who has been running the company for 20 yrs, once its all done, than he would probably get that bail.

8 ( +9 / -1 )

There's been no crime committed. Newspapers should consider reporting this in the Politics segment. Word  must get out to their family that the media is listing Ghosn as a criminal in their columns.

10 ( +16 / -6 )

Thanks, ADK99 - But wouldn't the logic be identical? Why would Nissan be putting it on their books now if they have no intention of paying it out?

3 ( +8 / -5 )

'Why would Nissan be putting it on their books now if they have no intention of paying it out?''

Maybe they are freeing up some 'make it all go away' money so the embarrased prosecutors can release him?

5 ( +8 / -3 )

All the information is coming from the very people that fingered Ghosn in the first place. Ghosn is guilty of telling Saikawa the he's going to get rid of him before he actually did. That was his biggest mistake. Never mess with the "harmony" of a Japanese company in Japan.

4 ( +8 / -4 )

There are many negative votes however no written rebuttals to these comments. I believe the reason for this is it is hard to rationalize what Nissan is doing. This really puts a whole new dimension onto this story.

The amount of compensation due to Ghosn is unbelievable and I do not think any executive is worth that much however that is not the point in this case. This was agreed to by Nissan, they have decided they will not pay and will still book this in their earnings report.

I would like to hear attempt to someone defend this

7 ( +13 / -6 )

Wait - He's being held on charges of under-reporting his income, and his argument is that he had not yet received the income, and now it looks like he won't, and if that is the case, he didn't under-report his income, so why is he still being held? Am I missing something here?

I think you've missed the part of the article where it says:

"The Japanese automaker plans to book 9 billion yen in additional pay to Ghosn in its earnings report to be released next Tuesday without actually disbursing it"

To put it another way, Nissan are now publicly acknowledging in their securities filings that a contractual liability to pay Ghosn exists (which was not previously disclosed and is the subject of one of the charges against Ghosn and Nissan) but they've refused to actually pay any amounts owing in hopes of having the contract declared illegal/void. Depending on what the terms of the contract actually say, Ghosn may now be able to sue Nissan for failing to pay these undisclosed amounts. To do so would obviously undermine his own defence.

6 ( +8 / -2 )

Ghosn is guilty of telling Saikawa the he's going to get rid of him before he actually did. That was his biggest mistake. Never mess with the "harmony" of a Japanese company in Japan.

Saikawa has effectively pushed Nissan's self destruct button. (Rather than loose face).

2 ( +6 / -4 )

Cricky - not if the terms of the contract have been breached.

1 ( +1 / -0 )

M3M3M3 - with your logic anyone at Nissan could have done something unethical and the Carlos and Kelly would have been held accountable. Not really the whole point of a public corporation is transparency allowing others externally and internally within according position to audit review and question.

1 ( +2 / -1 )

@M3M3M3

If he later sues for the withheld income, it would be the court, and not Nissan - which finalizes the payment amount.  So I don't think suing Nissan for breach of contract would undermine his case against the charge of not reporting it on the SEC filing.

2 ( +2 / -0 )

The Japanese automaker plans to book 9 billion yen in additional pay to Ghosn in its earnings report to be released next Tuesday without actually disbursing it

W.

T.

F.

What kind of scam is this. Ghosn locked up to prevent him from"destroying evidence, while Nissan may merrily go about fabricating evidence to make Saikawa's "whistleblowing" allegations stack up...

4 ( +5 / -1 )

Why does Nissan insist to destroy Mr. Ghosn's life & reputation?

They are dealing with him as a criminal.

The trial didn't start yet.

What if Mr. Ghosn is innocent and the Japanese court couldn't accuse him?

2 ( +3 / -1 )

This is the funniest story, I have heard in the Japanese world of business. Now, all the time wasted and hurt made to Carlos was more a 90,000,000 million yen salary problem. Granted it is a big deal to a normal salary man which we all are. But Nissan is a business, compared to America's biggest pay out to their Chairman , this is nothing. I think it is time, all tax payers in Japan start to get down to business with Nissan for making such a bad play. destorying a great man that helped Nissan get out of bankruptcy and saved thousands of workers at Nissan. Tax payers can sue for using our public money , waste of time and causing a bad reputation for Japan Inc and fair Japanese people. saikawa is the main person that must be sued, he started this bad kabuki. It was because of him that everything went to waste. He should be kicked out of Nissan to save Nissan.What a small selfish man.

0 ( +2 / -2 )

@Edgar Zardaryan

M3M3M3 - with your logic anyone at Nissan could have done something unethical and the Carlos and Kelly would have been held accountable.

Only to the extent that it involved a breach of their duties as representative directors. For example, if an employee in Nissan's accounting department were to independently decide to cook the books, Ghosn and Kelly wouldn't be personally responsible. However, if they became aware of the fraud but took no steps to stop it, or failed to exercise reasonable oversight, then this would amount to a breach for their directors duties.

@Omachi

If he later sues for the withheld income, it would be the court, and not Nissan - which finalizes the payment amount. So I don't think suing Nissan for breach of contract would undermine his case against the charge of not reporting it on the SEC filing.

Well, Ghosn's whole defence appears to rest largely on the claim that there is no contract that he can sue on. His position is that no disclosure of deferred compensation was necessary because any future payments would be entirely discretionary on Nissan's part. These payments would arise when (and if) Nissan decided to make them rather than being based on any prior agreement that gave Ghosn any entitlement to be paid. Since his arrest he has explicitly claimed that he is not entitled to sue Nissan for any deferred compensation. This is obviously inconsistent with Nissan booking this as some sort of future liability in their books. We'll have to wait and see I guess.

0 ( +1 / -1 )

Wow, J Inc. still to continue pulling tricks to keep this illusion of righteousness. I wonder how they can sleep at night.

4 ( +4 / -0 )

As expected no one seems to want to defend what Nissan is doing here. Most likely as it is not defensible therefore there are "down-votes" without rationale being provided.

As a permanent resident here and one that intends to stay I find this act by Nissan at the least perplexing and at the most appalling. It also stinks of Japan Inc. possibly driving the justice system.

It is illogical and the action is contradictory and makes no sense unless there is a sinister ulterior motive. I do not think even the great law novel writers such as John Grisham, et. all could spin such a story.

This is one of the most fascinating business events I have witnessed in a very long time (probably on par with or more interesting than Olympus).

I do not think much of Ghosn (and do not think he or any executive deserves such a lavish package) but I do smell something very wrong with this case.

Why does the prosecutor not have the balls to take this case to trial?!

2 ( +5 / -3 )

As expected no one seems to want to defend what Nissan is doing here.

Okay, I'll defend Nissan. Oh wait, I can't.

Imagine in the shareholder's meeting Saikawa is sacked and other board members involved. I wonder what the shareholders are actually thinking about this. Politicizing their money for that imaginary nationalism, I don't think they care about that. We'll see in April.

3 ( +3 / -0 )

Why does the prosecutor not have the balls to take this case to trial?!

He has been indicted so it is really up to the court to get the trail moving on the evidence presented, an it is up to judges to follow legal requirements on deciding bail. This does not appear to be happening.

Something, somewhere has gone very wrong with Japans legal system.

The Prosecutor s special investigation team seems to have acted ultra vires in their investigation, (international investigation s are usually done via intopol).

Judges have not correctly followed any due process of law, and don't seem to understand their own countries constitution. They seem to be just rubber stampers.

So when will this case come to court? When the judiciary in Japan sort themselves out.

In any event the refusal of bail is mind-boggling.

1 ( +3 / -2 )

.

This is just the beginning

-3 ( +0 / -3 )

So if Nissan hasn't paid him what's the prosecution's case?? He hid money that didn't exist? What a farce

1 ( +3 / -2 )

Word must get out to their family that the media is listing Ghosn as a criminal in their columns.

Which media? All the Japanese media articles I have seen have been very careful to list him as a suspect 容疑者 until he was charged, then as person charged ゴーン被告, or by title ゴーン全会長 former chairman. This is one area where the Japanese media is very careful to use legally and politically correct terminlogy.

-4 ( +0 / -4 )

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