November 21, 2018

The remuneration Nissan paid to its Chairman Carlos Ghosn, who was arrested for underreporting his compensation from BY2010 to BY2014, was nearly 140 times higher than the income a Nissan employee received during the same period of time, judging even from the underreported securities statements.

What is more, Ghosn took more than half of all Nissan executives' compensations for himself alone.

The actual amount of money that went to Ghosn during the 5-year period totaled almost ten billion yen, which was 270 times higher than that of the average Nissan employee. For comparison, the average yearly salary for a Nissan company employee at that time was between 6.85 million yen and 7.77 million yen.

Ghosn implemented massive corporate restructuring with Nissan plant closures and dismissals of a total of about 40,000 workers.

Abe Yasushi, a former dispatched worker to Nissan Technical Center (Atsugi City, Kanagawa Pref.), said that working conditions had deteriorated because of excessive cost-cutting. Abe added, "The worsening employment situation was demotivating workers to work to make high-quality products." This worker was laid-off in March 2009 and filed a lawsuit against Nissan demanding direct employment and a full-time position.

Tai Masaru, a lawyer engaged in lawsuits filed by former Nissan dispatched workers and fixed-term contractors, said, "Although Ghosn received ten billion yen, he underreported his earnings at about five billion yen. If there had been five billion yen available to protect the workers, there would have been no need to terminate the contracts of temporary workers. The counsel for the plaintiffs called Mr. Ghosn to court but he never showed up."

In September last year, it was found that unqualified employees in Nissan factories conducted the final safety inspections of new cars. Nissan's misconduct involving falsifying data on exhaust emitted also came to light this year.

Lawyer Tai pointed out, "When these dishonest acts became known, Ghosn did not come out in public to take responsibility." The lawyer maintains that Ghosn is the type of a person who does whatever he wants but stays out of the public eye when it comes to controversial issues that require explanation.

Past related articles:
> Ghosn the 'Cost Cutter' [November 20, 2018]
> Nissan Chairman Ghosn arrested for falsifying financial reports [November 20, 2018]