Ghosn together with Kelly and subordinated developed ways to structure payment of the undisclosed compensation after the former CEO’s retirements. They entered in secret contracts, backdated letters to grant Ghosn interest in the automaker’s Long Term Incentive Plan, and changed the calculation of the former CEO’s pension allowance, according to the SEC.
Additionally, the Commission said Kelly and Ghosn’s Nissan subordinates misled the automakers CEO. As a result, Nissan issued misleading financial disclosure related to Ghosn’s increased pension allowance.
In a statement, Steven Peikin, Co-Director of the SEC’s Division of Enforcement said, “Simply put, Nissan’s disclosures about Ghosn’s compensation were false. Through these disclosures, Nissan advanced Ghosn and Kelly’s deceptions and misled investors, including U.S. investors.”
