Based on the picture attached,2. Ghosn was the CEO of Michelin North America, chairman and CEO of Renault, chairman of AvtoVAZ, chairman and CEO of Nissan, and chairman of Mitsubishi Motors. Ghosn was also the chairman and CEO of the Renault– Nissan–Mitsubishi Alliance, a strategic partnership among those automotive manufacturers through a complex cross-shareholding agreement.Evaluate whether Carlos Ghosn acted within his role and responsibly his capacity as Chairman and CEO of Nissan. Financial wrongdoing allegations against Carlos GhosnBACKGROUNDBorn in Porto Velho, Brazil, to a family of Lebanese immigrants, he was educated in Lebanon from the age of six beforestudying engineering in Paris at the prestigious Ecole Polytechnique. He landed his first job at Michelin and waspoached by Renault in 1996, where he became known as Le cost killer for a radical restructuring that transformed theFrench camaker. His objectives at Renault were clear from the start. "For the first time, I was signing on to a companywhere my prospects were unlimited and my path lay open before me," he wrote in his autobiography.In 1999, Renault rescued Nissan from near-bankruptcy in a deal that ultimately left it with a 43 per cent voting stake inthe debt-laden Japanese carmaker. It was a historic transaction struck at a dismal economic time for Japan. Ghosn, then avice-president at the French company, was sent to Tokyo. Many Nissan employees, who were losing faith in their ownmanagement team, were mesmerized by his charisma. The now famous "Nissan revival plan", released just four monthsafter Ghosn was named the group's chief operating officer in June 1999, was widely acclaimed for its success intransforming a troubled company into a profitable carmaker within a year.The steps he took broke almost every taboo in Japan at the time: the closure of five plants, a cut of 21,000 jobs and atearing down of ties to the keiretsu, the business groups who underpinned Japan's postwar economic growth. Even hisfiercest critics acknowledge Ghosn's ability to deliver results, with his razor-sharp focus on performance and numericaltargets. "The initial V-shaped recovery was not achieved because he was a foreigner, but it was because he was CarlosGhosn," says Yutaka Suzuki, a former Nissan executive tipped to become the Japanese group's CEO before Ghosn tookthe top job in 2000. "It was perfectly natural for him to seek proper compensation when he was sent to Nissan, but heseems to have crossed the line with the various problems that have emerged since then."FAST FORWARDCarlos Ghosn, the ousted boss of the Renault-Nissan car-making alliance who was awaiting trial in Japan, flew intoLebanon on Monday evening, France's Les Ech05 newspaper reported.It was unclear how Ghosn, who holds both French and Lebanese citizenship, would have been able to leave Japan,where he has been under strict court imposed restrictions on his movements.Ghosn was being held in Tokyo's main detention center after allegations against him of financial misconduct. Thecompensation packages for Ghosn, one of the most celebrated and well-paid leaders in the global auto industry, havebeen a sore point among investors of the Renault-Nissan alliance which he helped launch in 1999. The scandal cameafter Ghosn narrowly won a shareholder vote at Renault over his 7.4 million euro pay package for 2017. He had lost thevote in 2016. The following are allegations made by Nissan and the media. There has been no public comment fromGhosn on the allegations, and Reuters could not contact him or his lawyers for comments.UNDER-REPORTED EARNINGSJapanese prosecutors allege Ghosn and fellow board member Greg Kelly, who is also being held for questioning,conspired to under-report by about half the 10 billion yen ($88 million) Ghosn earned at Nissan over five years fromfiscal 2010 in filings to the Tokyo Stock Exchange. Nissan declined to give further details about the under-reporting, butthe Nikkei business daily, citing unidentified sources, said Ghosn had received share price linked compensation of about4 billion yen over a five-year period to March 2015 and it went unreported in Nissan's financial reports. The financialreports also did not mention annual compensation of 100 million to 150 million yen Ghosn received from theautomaker's overseas subsidiaries, the newspaper said. The Wall Street Journal reported, citing people familiar with theinvestigation, that Ghosn eamed 8 billion yen in what Nissan calls unreported deferred compensation in the eight yearsthat ended in Mfarch 2018. The structure was formulated in consultation with Kelly, and Ghosn told colleagues that if hewas set to receive the deferred money after retirement, it wouldn't have to be reported in Japanese regulatory filings, thereport said. The Asahi newspaper also reported, without citing sources, that Ghosn had understated his remuneration atNissan by around 8 billion yen in the eight years through the fiscal year that ended in March, including 3 billion yenover the last three fiscal years. REPORTED DENIALJapanese media reported that Ghosn and Kelly have denied allegations against them, claiming that part of Ghosn'scompensation had been put aside until he left the company and therefore was not subject to disclosure. NHK said thatKelly told investigators that he had discussed the plan with other executives at Nissan. Ghosn has yet to make anystatement through his lawyers, while The Tokyo District Public Prosecutors remains tight-lipped about what they intendto do with the former Nissan chief and his colleague. French Finance Minister Bruno Le Maire weighed in on Sundaysaying he had yet to see evidence to support allegations of wrongdoing.Nada, HariA central figure at Nissan Motor Co. who was instrumental in the downfall of former Chairman Carlos Ghosn and a keygo-between in the automaker's talks with partner Renault SA is under pressure to leave the company following a payscandal, according to sources with knowledge of the matter. The push to oust Hari Nada, 55, which has the support ofRenault, may lead to him being forced to resign and could come as soon as a board meeting, the sources said, asking notto be identified because the information isn't public. Nada is cooperating with prosecutors under a plea-bargainingagreement in their case against Ghosn for financial crimes, people with knowledge of the matter have said. A lawyerwho studied in the United States and Japan, Nada is a senior vice president at Nissan and worked in the chief executive'soffice under Ghosn and his successor, Hiroto Saikawa. Nada was recently implicated in a scandal at the companyinvolving excess stock linked compensation, which led to Saikawa's resignation last month. Nada is expected to be akey witness in Ghosn's trial next year. "He will continuously be a Nissan member and he has no reason to leave,"Nissan spokeswoman Azusa Momose said of Nada, and declined to make him available for comment. Nada didn'trespond to an emailed message seeking comment and didn't answer his phone when contacted by Bloomberg News. Arepresentative for Renault declined to comment.A Malaysian-bon lawyer, Nada has been at Nissan since the 1990s and had worked closely with Greg Kelly, the otherNissan executive arrested along with Ghosn in November. Ghosn and Kelly have denied all charges. Nada is said tohave been closely involved with many aspects of the chairman's compensation, serving as one of three administrators ofZi-A Capital BV, a Dutch subsidiary of Nissan created by Kelly that purchased a house for Ghosn in Beirut. Nada wasalso aware of documents proposing that payments totaling as much as $80 million be made to Ghosn after his eventualretirement, sources have said. Prior to Ghosn's arrest, Nada and an administrator named Toshiaki Onuma were said tohave become concerned that some of what they saw might be criminal, and eventually approached the authorities.Facing the risk of becoming subjects of interest in the inquiry, they secured cooperation agreements under new judicial.rules allowing plea bargains in exchange for providing evidence against Ghosn.

Carlos Ghosn acted within his roles during the beginning of his days but as things go on things…

Answered: Based on the picture attached, 2.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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