The rise, fall and escape of Carlos Ghosn, CEO of Nissan and Peugeot (Discussion)
Tax class assignment related
This article assignment relates to an interesting story regarding Carlos Ghosn who previously masterminded the successful turnarounds of both Nissan and Peugeot and then became the CEO of both companies as well as helping Mitsubishi. Mr. Ghosn was known as a workaholic CEO and would fly back and forth each week between Tokyo and Paris where the companies are headquartered. He was considered a pioneer CEO with great vision and commanded a large compensation package. Then, in November 2018 ,Mr. Ghosn was suddenly arrested after landing in Tokyo on charges of understating his tax obligations. There was then much publicity about the alleged unfairness of the Japanese prosecution system regarding Mr. Ghosn’s treatment as compared to US prosecutions. (Over 99% of cases that go to trial in Japan result in a conviction, usually based on a confession.)
Then, on New Year’s eve of 2020, Mr. Ghosn arranged a daring escape to his birth home in Lebanon with the help of a team of people including a former green beret literally involving planes, trains and automobiles and a large musical box. He is currently preparing his criminal defense from Lebanon. Neither Peugeot nor Nissan has been able to attain the financial success that they had since Mr. Ghosn’s departure.
Instructions: Read through the following two articles and short videos and comment on your impressions of this story.
https://www.wsj.com/articles/nissans-carlos-ghosn-arrested-to-be-ousted-as-chairman-amid-misconduct-probe-1542634696 (Links to an external site.)