Ghosn Denies He Deliberately Understated Nissan Pay

Carlos Ghosn has insisted to prosecutors in Tokyo that he did not intentionally understate his compensation as chairman and CEO of Nissan Motor Co., according to Japanese media reports.

Public broadcasting system NHK quotes sources who says Ghosn and Greg Kelly, the Nissan board director in charge of human resources, deny any wrongdoing. Both men were arrested a week ago on suspicions of conspiring to hide some $44 million in Ghosn’s compensation over five years.

Nissan also points to an internal investigation that claims Ghosn used a company affiliated with the Renault-Nissan-Mitsubishi alliance to improperly buy homes for him in Beirut and Rio de Janeiro.

Last week Nissan’s board removed Ghosn as its chairman. The board also stripped Ghosn and Kelly of their positions as representative directors, a Japanese title that gave them power to enter into contracts on behalf of the company.

The Financial Times says the probe further raises questions about a consulting contract between Nissan and Ghosn’s older sister. A source tells the British newspaper that the investigation was unable to find evidence that any work was performed under the agreement.