Get started
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Carlos Ghosn Escapes to Lebanon

January 07, 2020

2 min read

Carlos Ghosn, the former CEO and chairman of carmakers Renault and Nissan and chairman of Mitsubishi, escaped from house arrest in Japan, and fled to Lebanon, smuggled away in an electronics box, on December 30, 2019.

Before his initial arrest in November 2018, Ghosn was known for revitalizing the Japanese automobile company Nissan and for overseeing an alliance between three of the world’s biggest car companies: Renault, Nissan, and Mitsubishi. Ghosn was first arrested for allegedly under-reporting his Nissan income by approximately $43 million, and other reported financial misconduct. He had been under house arrest since April 2019.

Ghosn’s Career

Originally from Brazil, Ghosn started his career in the car business at the French auto tire manufacturer Michelin, where he worked for 18 years and eventually ran the company’s North American business. He then spent three years as a vice president at the French company Renault.

In 1999, Renault purchased 36.8% of Nissan, creating a partnership called the Renault-Nissan alliance. Ghosn moved to Tokyo to lead Nissan and bail it out of $35 billion of debt. By cutting 14% of Nissan’s employees and cutting costs, Ghosh reportedly turned around Nissan’s business.

Ghosn became the Chairman CEO of both Renault and Nissan by 2008. He was the first person to be the CEO of two Fortune 500 countries simultaneously. Additionally, he was an executive in Japan, where non-Japanese CEOs are unusual. Nissan acquired 34% of Mitsubishi in 2016, further expanding the Renault-Nissan partnership. Ghosn took on another title as the Chairman of Mitsubishi.

Ghosn’s Arrest

In 2017, Ghosn earned $18.2 million annually, and was the second-highest-paid auto executive globally, according to Bloomberg. After stepping down from his CEO role in 2017, Nissan alleged that Ghosn had underreported his income from 2009 to 2017 with the help of an aide. Both Ghosn and the aide were arrested in Tokyo in 2018.

Nissan also alleges that Ghosn funneled $5 million of company money to a third party company in Oman to enrich himself. Renault also claims that Ghosn had been sending money to the same company in Oman, and that he had used company money to pay for his 2016 wedding.

Ghosn was under house arrest awaiting trial with 24/7 surveillance when he escaped Japan by fitting himself into a case used to carry audio equipment. Accompanied by two men, Ghosn flew to Turkey and then to Beirut, Lebanon, where he reportedly hopes to clear his name. Meanwhile, international police organization Interpol issued a Red Notice to Lebanon, urging the country to locate and arrest Ghosn.

Do Your Research

Carlos Ghosn is far from the first executive to possibly face—and to try to avoid—consequences for alleged corporate malfeasance.

While uncertainty is part of investing, it’s important to try to arm yourself with as much information as possible when deciding whether or not to invest in a company.  Remember to research company leadership and culture when you’re considering purchasing company stock.

Cheers to 2020!

Ring in the new year right by referring a friend.

Refer friends

By Claire Grant
Claire is a content writer for Stash.

Investment Profile

Legal Cannabis Industry

Get all the details on investing in marijuana and the cannabis industry legally.

Learn more
Explore more articlesChoose a topic to learn more about
pop culture politics love and money Technology budgeting

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.