Nissan says it is target of SEC inquiry after report of exec pay probe
The Securities and Exchange Commission’s microscope is now focused on Nissan Motor in the widening probe into the automaker and its former Chairman Carlos Ghosn.
Nissan acknowledged the inquiry into alleged financial misconduct.
Ghosn was first arrested on Nov. 19 in Japan and has been charged with failing to disclose more than $80 million in additional Nissan compensation for 2010-2018 that he had arranged to be paid later, according to Reuters.
Ghosn who was dismissed by Nissan after the arrest, has denied wrongdoing.
Nissan was also charged by Japanese prosecutors for under-reporting his pay, and has since pledged to overhaul its governance.
Bloomberg earlier reported that the U.S. regulator was investigating the company's disclosures on executive pay.
The report, citing sources, said the SEC is examining whether the company maintained adequate controls to prevent improper payments and whether lapses by Nissan violated U.S. securities law.
Separately, the Wall Street Journal reported that the SEC also sent a request for information to Ghosn. A representative for Ghosn could not immediately be reached for comment.
A Nissan spokesman confirmed the automaker received an inquiry from the U.S. regulator, without giving further details. The SEC was not immediately available to comment on the matter.
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Such an SEC inquiry does not mean that regulators have found any wrongdoing, but can lead to civil cases against companies and their employees, or they can end with no charges, sometimes months or years later.
Nissan has American Depository Receipts traded on the U.S. over-the-counter market, giving the United States authority to investigate it for potential wrongdoing.