YOKOHAMA, Japan - Nissan Motor Co., Ltd. (Nissan) has entered into a settlement agreement with the United States Securities and Exchange Commission (SEC) in an administrative tribunal action in connection with material misstatements regarding director compensation in Nissan’s prior annual securities reports. The SEC approved the settlement and it is final.
The SEC’s settlement order states that the perpetration of fraudulent conduct by former Chairman and Representative Director Carlos Ghosn, with substantial assistance from former Representative Director Greg Kelly, serves as the basis for Nissan’s liability.
Under the settlement, Nissan has agreed to pay a $15 million penalty to the SEC.
As noted in the order, Nissan provided significant cooperation to the SEC and has promptly implemented remedial acts to prevent recurrence, including transitioning to a new governance structure with three statutory committees (audit, compensation and nomination). Nissan has also amended its securities reports for all relevant fiscal years.
Nissan is firmly committed to continuing to further cultivate robust corporate governance.