Ghosns legal woes highlight governance failings in Japan

first_imgTOKYO — One of the biggest mysteries surrounding the arrest of Nissan’s former chairman Carlos Ghosn is over how he allegedly could have underreported his income by millions of dollars for years and why the company is going after the suspected wrongdoing now.Ghosn, who headed the Renault-Nissan-Mitsubishi Motors auto alliance, was arrested Nov. 19 on suspicion he underreported his income by $44 million over five years, or about half of what he was really making. Nissan Motor Co. and Mitsubishi have ousted him as chairman; the board of Renault SA of France says it’s waiting for more evidence.Nissan is among a growing list of top-name Japanese companies whose corporate governance has been found lacking in recent years. Experts say Japan needs independent oversight for executive pay, among other reforms.The Associated Presslast_img