Description: Nissan Chairman Carlos Ghosn has been ousted for financial misconduct. This is shocking news for the man credited with turning the company around. The details of the investigation have not been made public, but one aspect seems to be a under reporting of Ghosn’s compensation. Ghosn has been arrested along with a Nissan director Greg Kelly.
Date: November 19, 2018
1) What intrigued you about this story?
2) Why do you think company officials with so much to lose would risk partaking in this behaviour?
3) In chapter seven of Wiley’s Financial Accounting: Tools for Business Decision-Making, we read about internal control. What aspects of the system of internal control do you think may have failed Nissan in this embarrassing episode?