Report: Renault, Nissan Readied Deferred Pay for Ghosn

Several top-level executives at Renault and Nissan developed a plan to pay deferred compensation to Carlos Ghosn, then the chairman and CEO of both carmakers, through a Dutch subsidiary, Reuters reports.

Ghosn and Nissan have been indicted in Japan for failing to report $43 million in such payments during fiscals 2010-2014. Ghosn remains in jail, along with Nissan board member Greg Kelly, who has been accused of aiding in the scheme.

Renault confirms to Reuters that Kelly did consult with several people at Renault and Nissan about deferred payments to Ghosn. Renault says the transfers were to compensate Ghosn for his efforts to enhance synergies between the companies through the alliance they launched in 1999.

Kelly had asked whether it would be legally possible to make those payments through RN BW, an alliance affiliate in the Netherlands, Renault tells Reuters. In the meantime, the value of such payments continued to grow from year to year.

Reuters cites documents that show a plan was drawn up in 2017 to channel millions of euros to Ghosn through the Dutch affiliate. The documents indicate that among executives included in emails about the deferred-payment plan were Nissan CEO Hiroto Saikawa, now a critic of Ghosn; and Renault Deputy CEO Thierry Bollore and General Secretary Mouna Sephehi.

Separately, Reuters says Nissan has called for a probe into a decision earlier this year by the Renault-Nissan alliance to create a new foundation in Switzerland. Reuters says the alliance board, headed by Ghosn, agreed in late September to transfer €30 million ($34 million) to the alliance organization.

Sources tell Reuters that the transfer was canceled after Ghosn was arrested in Japan on Nov. 19.