Greg Kelly, former representative director of Nissan Motor Co., claimed that he properly managed the executive compensation of former Chairman Carlos Ghosn after the two were arrested on suspicion of understating Ghosn's remuneration in the company's annual securities reports, according to sources related to the matter.
According to the sources, Kelly, 62, denied the allegations against him to a person close to him, saying that he properly managed Ghosn's remuneration, including consulting with experts outside the company.
On Nov. 19, Ghosn and Kelly were arrested on suspicion of violating the Financial Instruments and Exchange Law. Ghosn allegedly colluded with Kelly to understate his remuneration by about 5 billion yen, although he had actually received pay totaling about 9.998 billion yen over five years from the business year ending in March 2011.
According to the sources, Kelly insisted he had consulted with Nissan executives in charge of the matter over securities reports statements and also sought advice from outside lawyers. Meanwhile, Kelly has told the special investigation squad of the Tokyo District Public Prosecutors Office that he would speak after consulting with a lawyer.
The special investigation squad believes Ghosn directed Kelly to understate his remuneration and the order was implemented. However, Kelly told the person close to him that there was no such direction from Ghosn, and that he committed no wrongdoing. The former representative director also said he was serving for the benefit of the company, the sources said.
Kelly, a lawyer who usually lives in the United States, joined Nissan North America Inc. in 1988 and became Nissan Motor Co.'s representative director in 2012.
Nissan President Hiroto Saikawa mentioned Kelly at a Nov. 19 press conference, saying that Kelly had "exercised control within the company as he carried a lot of clout against a backdrop of Ghosn's authority."
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