AMSTERDAM: Carlos Ghosn, the fugitive former auto executive, used a joint venture between Nissan and Mitsubishi to inflate his pay, effectively clawing back a cut to his declared wages, and to cover a personal tax debt, lawyers for the companies said on Monday.
Ghosn, the former chairman of the Renault-Nissan-Mitsubishi alliance, was arrested in Japan in 2018 on financial misconduct charges but fled to Lebanon last December.
He has repeatedly denied any wrongdoing, including concerning the way he was compensated.
Nissan and Mitsubishi have been pouring over payments made to Ghosn from their Dutch-based joint venture, and had already challenged a salary and bonus worth 7.3 million which they claim he granted himself without the knowledge of their respective boards.
In new arguments submitted to a Dutch court on Monday, lawyers for the firms alleged Ghosn awarded himself that compensation to offset a cut in his declared earnings at Nissan.
Ghosn — who was under public scrutiny in Japan and France over his wages during his tenure, though he has argued since that other auto industry bosses were paid far more — had agreed to cut his pay when stepping down as Nissan CEO in April 2017.
He stayed on as chairman, and also had the top job at Renault.
Representatives of Ghosn’s legal team said the allegations of unknown or unjust payments were unfounded.
“We don’t dispute that Mr.Ghosn received a good salary,” attorney Roeland de Mol said. “But he had the heavy task of getting French and Japanese companies to cooperate. He didn’t retire to go play golf after he stepped down as Nissan CEO.”
The new details about Ghosn’s compensation emerged during a court hearing in Amsterdam centered on an unlawful dismissal suit brought by the former auto executive against the Japanese carmakers.
Ghosn is seeking 15 million euros in damages from the Nissan and Mitsubishi, who, he alleges, violated Dutch labor laws.
Nissan-Mitsubishi lawyer Eelco Meerdink said there was evidence that Ghosn made the alliance pay a personal French tax debt of €498,000 in 2018.
France’s Renault covered the cost of the bill in a first instance, and was refunded by Ghosn, who had received a payment from the Nissan-Mitsubishi joint venture for the same amount, Meerdink said. Renault declined to comment.
The lawyer also alleged that Ghosn had arranged a “pre-payment” of his 2019 salary in 2018 to avoid a scheduled increase in Dutch income tax rates.
Nissan told the Dutch court on Monday that it would request that Ghosn repay all of the compensation received from the joint venture with Mitsubishi, as there was no evidence that it had been properly authorized, a source close to Nissan said.
As part of Ghosn’s unlawful dismissal case against the Japanese carmakers, his lawyers are now pushing for the release of internal documents which the carmakers used to substantiate his removal on allegations of financial misconduct.
Ghosn’s legal team claims he was unfairly dismissed as chairman of Nissan-Mitsubishi BV, a Dutch-registered entity, because the details of the allegations were not shared with him.
His lawyers say the documents will show the companies were aware of his activities.
De Mol, the attorney, said he was pushing for “a full debate on the reasons of Ghosn’s dismissal... Mr. Ghosn is ready for a fight.”
Nissan-Mitsubishi lawyer Meerdink dismissed the demands, saying the reasons for the executive’s dismissal were clear, and that his lawyers were “going on a fishing expedition.”
The Amsterdam court said it would postpone any decision on documents until Nissan and Mitsubishi file their full case on the reasons for Ghosn’s dismissal, expected on March 26.
Ghosn used Nissan-Mitsubishi venture to inflate pay
https://arab.news/wgtmr
Ghosn used Nissan-Mitsubishi venture to inflate pay
- Ghosn was arrested in Japan in 2018 on financial misconduct charges but fled to Lebanon last December
- In a Dutch court, lawyers for the firms alleged Ghosn awarded himself compensation to offset a cut in his declared earnings at Nissan
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
