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Nissan's Ghosn crisis

Ghosn indictment shines fresh light on Japan Inc.'s sleeping boards

Internal governance failures and serious missteps highlight weaknesses

Carlos Ghosn attends an executive committee meeting at Nissan. (Photo by Mamoru Yago)

TOKYO -- Nissan Motor is paying the price for having a board asleep at the switch, as prosecutors on Monday indicted the company and former Chairman Carlos Ghosn for allegedly under reporting his income for many years. 

The main allegation against Ghosn is failing to report $44 million in compensation in Nissan's financial statements over a period of five years. The amount includes tens of millions of dollars in deferred compensation he received but did not report when other Nissan executives reported their compensation in full in the financial statements. 

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