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Nissan's Ghosn crisis

Ghosn scandal unmasks Nissan's lack of governance

Automaker had few outside directors with management experience, say experts

Nissan Motor Chairman Carlos Ghosn. The automaker reportedly had not been adhering to Japan's corporate governance code.   © Reuters

TOKYO -- Nissan Motor Chairman Carlos Ghosn apparently began receiving unreported income around the time Japan mandated the disclosure of executive remuneration in 2010 -- and as the executive faced heavy criticism over his pay.

The allegations of financial misconduct that led to Ghosn's arrest on Monday have their roots in the Japanese automaker's corporate governance -- or the lack of it -- experts say.

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