[Miyata]

Originally Posted by D33-PAC

I don't understand the over glorification and idolization .

Aha, our dear old friend Willy has rather eloquently answered the question for us -

Some are born great, some achieve greatness, and some have greatness thrust upon them.

-William Shakespeare

From what I've read and seen, Carlos is certainly very talented, hard-working, and driven. For all we know, the investigation might come in his favor at the end of it all - possibly someone just trying to sabotage Carlos!

I do agree that anyone that does good, exemplary work must be recognized, rewarded, and held up as an example of excellence; But to place them on the highest, grandest pedestals and worship them as icons in every sphere of life seems a bit too far fetched and misplaced.

I guess they too would be feeling the weight of this unnecessary burden that is just thrust upon them and would rather lead a normal life continuing to excel in their core chosen strengths.

[Ithaca]

BBC mentioned yesterday that he has been charged but is unlikely to serve a prison sentence.
He may be asked to pay a personal fine and be let off.

My query is -
Mr Ghosn, for all his supposed faults, was a hard task master who still has a lot to offer to anyone who will hire him.
Would any Indian car manufacturer take a bold decision to hire him to helm their Indian and International operations or is he too toxic at the moment.
This assumes that he will be willing to stay and work in our country.

[John]

Another side to the story. Maybe Nissan was just waiting for a chance..... That’s why the magnitude of the hoopla. It clearly appears that relationships had soured much before this event.

http://https://www.bloomberg.com/opinion/articles/2018-11-19/nissan-s-drama-looks-a-lot-like-a-palace-coup

[GTO]

Reuters throws more light on some of the accusations:

Prosecutors said that Ghosn and Kelly conspired to understate Ghosn’s compensation over five years starting in fiscal 2010 as being about half of the actual 9.998 billion yen ($88.9 million).

Public broadcaster NHK said Nissan paid billions of yen to buy and renovate homes for Ghosn in Rio, Beirut, Paris and Amsterdam, citing unnamed sources. The properties had no business purpose and were not listed as benefits in TSE filings, NHK said.

[SmartCat]

Originally Posted by GTO

Reuters throws more light on some of the accusations:

This reuters article clears things up a bit:

1) Ghosn is accused of falsifying corporate annual report (not company financials, but executive compensation part) and that is an offense punishable by imprisonment under Japanese laws.

2) Falsifying executive compensation can also be construed as siphoning off money from the company. In this case, it works out to be a significant $44 million.

Note that Japanese shareholders insist that CEO pay should not be too high when compared to median employee salaries. That explains why Ghosn's publicly disclosed salary was relatively low (maybe 30 to 50x median salary). It looks like Ghosn thought he deserved more.

Related discussion on CEO pay in automobile industry:
https://www.team-bhp.com/forum/india...-industry.html (Analysis: CEO/MD pay, median salaries & worker wages in the Indian automobile industry)

[AMG Power]

Nissan Board divided over plan to dismiss Carlos:

https://www.google.co.in/amp/s/www.b...miss-ghosn.amp

...board members are divided, saying they have been given too little detail on his alleged financial crimes, according to people familiar with the matter.

Looks like the story is just beginning to unfold.

When you turn around large corporations you don't do this in a professional capacity alone - you usually have a white knight to back you. Someone who is a major stake holder and politically well connected. This is more so when you do this in a country of which you aren't a native.

The Japanese turned around the worlds automotive industry and here we have a Japanese auto company that has been turned around by a Lebanese - Brazilian. Obviously cause for heart ache within the Japanese.

On the evaded income of £44.9 million, what he would have saved is not 44.9 but the tax on 44.9 which would be around $13.5 million - hardly enough to tempt a CEO.

Company houses in various parts of the world for Chairmen is a done thing in most large corporations. It isn't necessary for the company to have business benefits from day one - this may accrue later. To even mention company houses shows the weak wickets these guys are on.

Carlos Ghosn's probable biggest faux pax may be the lack of a white knight. But it looks like it hasn't got to that just yet.

[anjan_c2007]

Meanwhile the news pours in that the custody of Carlos Ghosn is extended by 10 days. Renault has asked his deputy to look after his responsibilities temporarily. The French government suggested his sacking from Renault (the government holds a 15 % stake in Renault), while the company executives have not taken kindly to the government's proposal.

https://www.bbc.com/news/business-46287344

[Hayek]

The more one reads about this, the more it stinks. It does not seem like the market rent for the houses was USD 44 mm - it seems like Ghosn got various overseas affiliates of Nissan to buy houses for that amount which he used. The asset still belongs to Nissan - it just didn’t receive rent or account for that as compensation. It is impossible that the purchase of these houses was sanctioned single handedly by Ghosn. It is a matter of interpretation whether they are perks (though the one in Beirut almost certainly was one) or company guest houses he used while traveling on work instead of staying in a hotel (easily justifiable for Rio, Amsterdam or Paris). Not something for which you deserve jail before a trial. The message to pesky foreigners seems to be, “Don’t cross Japan Inc”

[D33-PAC]

It can also be an insider coup. If the Japanese want the firm to be more Japanese, all they need to do is convene a conspiracy at the board level. Who knows how hungry the guys below him were and how much they wanted his seat. Politics and powerplays at board rooms can be epic, and people can get their head handed to them in the shark tank.

[AMG Power]

Originally Posted by D33-PAC

Who knows how hungry the guys below him were and how much they wanted his seat.

Absolutely no way. Not in this scenario.

Such actions would happen only when he has rubbed the Board (his equals) or external authorities the wrong way.

A leader as strong as Ghosn would have very easily sensed if there were any issues at his second or third line and dealt with it effectively not allowing it get to this state. His grapevines would be well oiled. He wouldn't have got to where he is if he were lame enough to allow that to happen.

Additionally it appears that his second line is actually rooting for him to remain in Renault while the government wants him replaced. Another indication of the political nature of this incident.

[GTO]

Based on further reading, it does appear that Nissan was vehemently opposed to a merger with Renault, which Ghosn had intentions of carrying out. Renault was the tail that wags the dog due to its control over Nissan, something the latter hated because it is the bigger company.

Whether his enemies took him out or not, Carlos shouldn't have goofed up by under-reporting his income as alleged either. Sure looks like he gave his detractors an opportunity.

[volkman10]

Renault lets accused chief executive Carlos Ghosn keep top job despite fraud claims.

Mr. Ghosn, temporarily incapacitated, remains Chairman and Chief Executive Officer. The Board of Directors resolved to appoint Mr. Thierry Bolloré on a temporary basis as Deputy Chief Executive Officer Mr. Bolloré will therefore lead the management team of the Group, having the same powers as Mr. Carlos Ghosn

Press Release:

[kiku007]

Originally Posted by GTO

Whether his enemies took him out or not, Carlos shouldn't have goofed up by under-reporting his income as alleged either. Sure looks like he gave his detractors an opportunity.

That's the whole point that shouldn't get lost.

Reminds of the quote from Man from U.N.C.L.E

Link:https://www.imdb.com/title/tt1638355/quotes

Sanders: Now, I know that you've been taking care of yourself on the side. Wetting your beak, so to speak. We don't pay you enough to be able to put truffles in your rizzoto, Solo. But don't ever make the calamitous error of mistaking my deliberate short sightedness for blindness.

[AMG Power]

Originally Posted by GTO

Based on further reading, it does appear that Nissan was vehemently opposed to a merger with Renault, which Ghosn had intentions of carrying out. Renault was the tail that wags the dog due to its control over Nissan, something the latter hated because it is the bigger company.

True. That was the bit that started the controversy. An iconic Japanese company losing its heritage to the French must have stirred up passions in a lot of folks.

Originally Posted by GTO

Whether his enemies took him out or not, Carlos shouldn't have goofed up by under-reporting his income as alleged either. Sure looks like he gave his detractors an opportunity.

It doesn't look like a straightforward case of under reporting his income. It's more a build up on rental values of guest houses, who's paid for it, perquisite values etc. Something that he would have hoped his CFO would look into. Also probably why the Nissan Board is seeking more information before taking a decision.

[D33-PAC]

For those of you who have time or the interest - does anyone know how rich and invested Carlos Ghosn would have to be to have enough shares to not be kicked out - or in other words - be rich enough to control his own destiny on the board by way of voting power ?

You cannot kick Mukesh Ambani out of Reliance - he owns most of the shares and the board is all his. But heads for hire/execs/chairmans without shares are as fireable as any employee.

For true job security - he could have invested all his money in buying up shares but I doubt it'd be worth anything close to the amount he'd need for having proper voting power.