TOKYO – Japan’s markets watchdog recommended on Tuesday a 2.4-billion yen (around $22.3 million) fine on Nissan Motor for failing to properly report the remuneration of its former head Carlos Ghosn for several years, the car maker said.
In a statement, Nissan said the Securities and Exchange Surveillance Commission recommended that the country’s financial regulator, Financial Services Agency, should issue an administrative monetary penalty payment order against the company.
“The company takes this recommendation extremely seriously and will consider its response after receiving the FSA’s official notice,” the Nissan statement said.
“In the absence of any special circumstances or other reasons, the company intends not to dispute the alleged facts and the amount of the administrative monetary penalty.”
The fine has been imposed because Nissan failed to report the full remuneration of Ghosn, who headed the firm between 2010 and 2018.
The financial regulator has also filed a complaint against the company for breaching its regulations, a legal action that falls outside the charges framed by the Japanese public prosecutor’s office against the company and Ghosn for the alleged irregularities.
The Yokohama-based company added that in May it voluntarily submitted a corrected version of remunerations to its board of directors between 2005 and 2017.
It also offered its sincere apology to shareholders for any concerns that may have arisen, and underlined its willingness to continue to make efforts to strengthen its governance.
The Japanese watchdog estimates that Nissan did not include in its reports a series of payments agreed with Ghosn worth 9.1 billion yen that he would receive after his retirement.
The former Nissan head, who is currently on bail and has been on remand on two occasions, was first arrested on Nov. 19, 2018 for alleged irregularities related to the declaration of his remunerations, among other crimes.
Ghosn was dismissed following his arrest, and the company decided to provide a new executive structure to improve its management and transparency.