A Renault SA investigation has found that jailed chief executive officer Carlos Ghosn’s compensation at the French automaker complied with French law, sending another signal of division with its alliance partner Nissan Motor Co.
A preliminary review of the years 2015 to this year found nothing amiss on pay to the chief executive, who was indicted in Japan for understating his income, Renault said in a statement on Thursday.
The board opted to keep in place interim top management and not oust him, saying it does not have information about Ghosn’s defense.
Photo: EPA-EFE
Renault also agreed to jointly investigate with Nissan their alliance’s Amsterdam-based holding company, RNBV, according to a person familiar with the matter.
Lawyers are in talks to define the scope, the person said.
“Nissan remains steadfast in its commitment to the alliance, and will continue to support its partners in the best interests of shareholders, customers and employees,” the Japanese automaker said in an e-mailed response to a request for comment.
Renault’s latest findings stand in stark contrast to the unfolding events at Nissan.
After a months-long probe by the Japanese company, Ghosn was on Monday charged for understating his income by US$43 million.
He has been removed as chairman of Nissan and alliance partner Mitsubishi Motors Corp, and remains in a Tokyo jail as Japanese prosecutors push ahead with a criminal investigation that has shaken the global auto industry.
Ghosn’s reported compensation totaled about US$15 million annually, on average, during the five-year period through 2015 that has been investigated in Japan.
That total includes what he was paid by Nissan and Renault.
Renault’s board was on Thursday briefed by the company’s lawyers on the reasons why Ghosn was charged, according to the company’s statement.
Renault had complained about being kept in the dark since the chief executive was arrested, and the board requested that the automaker’s lawyers continue to review and assess information provided by Nissan.
Meanwhile, Nissan’s external board members met on Thursday, but failed to reach an agreement on who would replace Ghosn as chairman at the Japanese company, a person familiar with the matter said.
The external directors are set to meet again before Monday’s board meeting, the person said.
There is a possibility that Nissan’s board might not appoint a new chairman next week, as it is prioritizing setting up a governance committee, the person said.
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