The compensation of Nissan executives could have reached 3 billion. Yen cap for FY 2017

TOKYO (Kyodo) – Nissan Motor Co.'s executive compensation during fiscal 2017 could have exceeded the cap of nearly 3 billion yen set by shareholders, a significant amount going back to its former chairman Carlos Ghosn , currently arrested, sources close to the case said Wednesday.

While only 735 million yen ($ 6.5 million) were included in the company's securities reports as remuneration for Ghosn during the fiscal year ended March, sources said the payment to the charismatic boss could have been 2.5 billion yen.

In this case, Nissan may have paid Ghosn, accused of falsifying securities reports, and other leaders, a total of more than 2.99 billion yen over the past year. fiscal year 2017, exceeding the ceiling adopted at a 2008 general meeting of shareholders.

The act could constitute a "serious breach of trust" on the part of shareholders, may even lead to the cancellation of the company, according to some experts.

Under the Corporation's rules, the payment of compensation to each executive officer must be decided in discussions between the Chairman of the Board and representative members of the Board. But sources believe that Ghosn, the 64-year-old who has run the company for nearly 20 years, has actually decided on the sum alone.

Ghosn was arrested last week by Tokyo prosecutors for alleged violation of Japan's financial instruments and foreign exchange law by under-reporting its compensation of about 5 billion yen over five years until March. 2015, while he had received 10 billion yen during this period.

Prosecutors also plan to be accused of failing to report a new 3 billion yen compensation over three years as of April 2015.

Ghosn denied having the intention to falsify the financial statements, but admitted that he had not included in the documents a portion of the compensation that he was about to receive when of his retirement, because "payments have not been paid," according to sources.

Ghosn reportedly received about 2 billion yen a year as compensation. But he asked Greg Kelly, a former leader of the Nissan representative who had been arrested with him for alleged conspiracy, to declare that he earned 1 billion yen a year in security reports and planned to receive the remaining amount. after his retirement.

The undisclosed post-retirement payment would be approximately 8 billion yen over the eight years following fiscal year 2010.

According to sources, Ghosn apparently would attempt to argue the validity of a purported document that showed that Nissan was in agreement on the payment, claiming that he had not signed it.

Under the Financial Instruments Act, the remuneration must be disclosed in a securities report when it is fixed, even if the actual payment is expected in the future.

Kelly has denied any wrongdoing, according to his family lawyer in the United States, who offers legal advice.

"He absolutely believes that what he did was legal.He thought it was appropriate.It thinks it was in the interest of society and that it does not felt guilty of no criminal behavior, whether in Japan or the United States, "Aubrey Harwell, a Tennessee lawyer, told Kyodo News during a phone interview.

Harwell also said that Kelly "planned to be with his family in the United States for Thanksgiving," but he is now in a "difficult situation" because he is being detained and interrogated.