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Ex-Nissan Chairman Ghosn denies understating salary

Carlos Ghosn (Mainichi)

TOKYO (Kyodo) -- Carlos Ghosn, who was recently ousted as Nissan Motor Co. chairman after being arrested for the alleged understatement of his remuneration in securities reports, has denied the charge, sources close to the matter said Sunday.

    No comments from Ghosn have been made public since his arrest on Monday by Tokyo prosecutors on suspicion of underreporting his pay package by around 5 billion yen ($44 million) for five years through fiscal 2014. He received nearly 10 billion yen during that period.

    Greg Kelly, former Nissan representative director who was arrested for allegedly conspiring to understate Ghosn's remuneration, has also denied the allegation, according to the sources.

    Ghosn and Kelly were dismissed at an emergency Nissan board meeting Thursday, while Nissan's parent Renault SA has retained Ghosn as both chairman and CEO, citing a lack of information related to the allegations.

    Meanwhile, Nissan is preparing to file a damages suit against Ghosn over the alleged misappropriation of funds to buy homes abroad for personal use and cover private expenses, other sources familiar with the matter said.

    The company is reviewing each case of alleged misuse of funds discovered by an internal probe that led to the arrest of Ghosn and Kelly.

    The Yokohama-based automaker is considering how to recover the funds Ghosn allegedly spent to buy residences in the Netherlands and three other countries as well as $100,000 of annual pay to his sister for an advisory service she never provided, according to the sources.

    Nissan also believes Ghosn had the company pay for his family's trips and dining.

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