1. On Monday, Nissan Chairman Carlos Ghosn was arrested for financial misconduct. He will be tried by the board later this week. Ghosn was also the CEO of Nissan’s French partner Renault.
2. Nissan announced that an internal investigation revealed “personal use of company money and under-reporting for years how much he was earning.”
3. Hiroto Saikawa, Nissan’s CEO, said that Ghosn accumulated too much power: “The problem of governance was significant. Looking back, after 2005 when he became CEO of both Renault and Nissan, we did not really discuss the implications.”
4. Saikawa continued, stating, “To have so greatly violated the trust of many, I feel full of disappointment and regret. It’s not just disappointment, but a stronger feeling of outrage, and for me, despondency.”
5. There are no specifics yet regarding the amount of company money that Ghosn personally used, but Saikawa said it was “serious” and has been going on for years.
6. At a board meeting that will take place Thursday, Saikawa said he would propose that the company remove Ghosn from his position as Chairman.
7. Renault shares dropped 11 percent, and Nissan’s German-listed securities fell 10 percent.