Renault Blocks Ghosn Payout, Ghosn Engages New Legal Team

Carlos Ghosn, chairman and CEO of the Renault-Nissan-Mitsubishi Alliance
Carlos Ghosn, chairman and CEO of the Renault-Nissan-Mitsubishi Alliance, attends at the Tomorrow In Motion event on the eve of press day at the Paris Auto Show, in Paris, France, October 1, 2018. (Photo: REUTERS/Regis Duvignau/)

Former Renault Chairman Carlos Ghosn will not be getting compensation following his resignation, says French car company, Renault.

The company's board unanimously ousted Ghosn and decided to waive Ghosn's non-compete commitment. Likewise, the company is also refusing to pay the corresponding compensation equal to two years fixed and variable compensation, The Economic Times reported. 

Ghosn is currently facing charges for falsifying financial reports and under-reporting compensation in Tokyo, Japan. The charges alleged that he committed a breach of trust when he had paid a Saudi businessman and had Nissan Motor Co. shoulder investment losses.

Likewise, Ghosn also loses the shares granted to him by Renault from 2015 to 2018. The company's board noted that the shares granted to him are conditional, subject to the continued presence of Ghosn at Renault, The Economic Times reported. 

Following the arrest, Ghosn has put the blame on executives who allegedly plotted treacherous acts against him. He said that there is "no doubt" that this was an ill-motivated maneuver from Nissan executives.

According to Ghosn, some Nissan executives did not agree with his plan to integrate Renault with Nissan and Mitsubishi. The plan consists of having a one holding company when the three companies begin to be more closely integrated.

He said he has discussed the plan with current Nissan head Hiroto Saikawa. In an interview with Nikkei business daily, Ghosn further said that he wanted to include Mitsubishi Motors boss Osamu Masuko in the discussion but said that Saikawa wanted it to be one-on-one. 

Meanwhile, Ghosn has replaced his legal team and acquired the services of veteran lawyer Junichiro Hironaka to lead his defense. Hironaka is famous for winning some high profile acquittals in Japan. According to Ghosn, his decision to shake up his legal team is part of his preparation for trial, The World Street Journal reported. 

In an emailed statement, Ghosn said, "I look forward to defending myself vigorously, and this represents the beginning of the process of not only establishing my innocence but also shedding light on the circumstances that led to my unjust detention."

Ghosn is currently detained in Tokyo jail and has been staying there for nearly three months pending trial. He previously pledged to wear an ankle bracelet if granted bail, to show that he is not a flight risk. Unfortunately, Japan does not have such gear to monitor its suspects, making his pledge moot. This is why his previous requests for release on bail has been rejected.

The executive maintains that he is innocent of the charges against him.

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