Renault probe uncovers no wrongdoing by Carlos Ghosn on compensation

There was no evidence of wrongdoing at Renault on the compensation of chief executive officer Carlos Ghosn.
There was no evidence of wrongdoing at Renault on the compensation of chief executive officer Carlos Ghosn.PHOTO: AFP

PARIS (BLOOMBERG) - An internal investigation by Renault SA uncovered no evidence of wrongdoing at the French carmaker on the compensation of chief executive officer Carlos Ghosn, who was indicted in Japan for financial impropriety at partner Nissan Motor Co.

The approved compensation was compliant with French law and industry recommendations, Renault said in a statement following a board meeting on Thursday (Dec 13).

The board also said it does not have "information concerning Carlos Ghosn's defence". Shares extended their advance after the news, rising as much as 3.9 per cent before trimming gains.

The probe into the pay packages of Ghosn and top managers at the French carmaker was a response to the executive's arrest in Tokyo for under-reporting compensation at Nissan.

The French manufacturer and its most powerful shareholder, the government, chose to keep Ghosn on at the helm while putting in place an interim chairman and CEO. Ghosn was ousted at Nissan and Mitsubishi Motors, the third partner in their globe-spanning alliance.

Renault's board meeting followed an outline by Nissan lawyers to their Renault counterparts on the reasons why Ghosn was charged, Bloomberg News has reported. Renault had complained about being kept in the dark since the executive was arrested Nov 19.

On Thursday, the board requested the carmaker's lawyers continue to review and assess the information provided by Nissan, the statement said.