By MATT BLOIS
Nissan, the company’s former CEO and a former executive from Brentwood have settled civil fraud charges brought by the Securities Exchange Commission related to underreporting executive income.
Nissan will pay a $15 million fine. Former Nissan CEO Carlos Ghosn will pay a $1 million fine, and Greg Kelly, a former Nissan executive from Brentwood, will pay a $100,000 fine.
According to the settlement, Ghosn is banned from serving as an officer or director of a company for 10 years. Kelly is banned from serving as an officer or director for five years.
Ghosn and Kelly settled the charges without admitting or denying the allegation, according to a press release from the SEC.
The settlement prevents Ghosn or Kelly from denying the charges, but both have denied underreporting Ghosn’s income in the past.
In November 2018, Nissan accused former CEO Carlos Ghosn of underreporting his income. The company also accused Kelly of helping him do that. That led to the dismissal of both Ghosn and Kelly from the board of directors in April.
A report released by Nissan earlier this month, also charged Ghosn’s successor Hiroto Saikawa of improperly handling some of his share appreciation rights in 2013, resulting in overpayments. The report claims that Kelly helped him do that.
Saikawa, who had worded an audit of the company’s equity plans following Ghosn’s ouster, resigned from the company following those allegations.
The report released in September, also accuses Kelly of underreporting reporting his own income and improperly handling some stock warrants he received.
The report claims Kelly received an overpayment of about $65,000 because of the way he handled his equity warrants.
The turnover of top executives at Nissan has trickled down to the North American headquarters in Cool Springs. The Franklin headquarters has seen the appointment of a new chairman, a new top sales executive and a new Americas leader for Infiniti, among others.