Nissan chair Carlos Ghosn has been arrested in Japan after an investigation by the carmaker revealed that he has been underreporting his income for several years, according to a report by Japanese broadcaster NHK.
The company said both Mr Ghosn and Greg Kelly, a director at the firm, have been “reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount” over a period of many years.
According to reports, Mr Ghosn is suspected of understating his compensation by as much as 5 billion yen (£35bn) over five years.
Nissan also said: “In regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.”
The group has proposed that Mr Ghosn and Mr Kelly both be removed from their roles.
Nissan chief executive Hiroto Saikawa told a press conference in Tokyo: “On behalf of the company I would like to offer my apologies. I am sorry about the commotion and anxiety caused.
“I feel despair, indignation and resentment. As the details are disclosed I believe that people will feel the same way as I feel today.”
Meanwhile Mr Ghosn is being questioned by Tokyo prosecutors, according to reports by Japanese media on Monday.
Mr Ghosn has worked at Nissan since 1999, when he joined as chief operating officer, and served as chief executive officer from 2001 until 2017.
He is chair and chief executive of the Renault-Nissan Alliance, which also includes Mitsubishi.
Shares in Renault dropped by more than 13 per cent after news of Mr Ghosn’s alleged misconduct emerged.
Additional reporting by newswires