Japanese prosecutors arrested one of the world's top executives, Nissan chief Carlos Ghosn, as well as a senior board member after a company investigation found that he had allegedly under-reported his compensation for years.

The company in earlier financial disclosures reported Ghosn's income at just south of US$10 Million a year.  But a statement hinted that Ghosn had allegedly helped himself to a lot more:   "Numerous other significant acts of misconduct have been uncovered, such as personal use of company assets," it read.  An internal whistleblower prompted the internal investigation, the results of which was then turned over to Japanese anti-corruption prosecutors. 

Chief Executive Officer Hiroto Saikawa on Thursday will ask the board to "promptly remove Ghosn from his positions as chairman and representative director", and have Greg Kelly ejected from the board.  Saikawa said it took a while to detect the problem because Ghosn concentrated much of the company's oversight power in his office.  Saikawa admitted the company needs to worth with a third-party on improving corporate governance and to do it fast.

Under Ghosn's direction, Nissan formed an alliance with Renault and Mitsubishi that sold 10.6 million vehicles last year, on par with rivals Volkswagen and Toyota.  This alliance employs more than 470,000 people in nearly 200 countries.

Because France is a major shareholder in Renault, President Emmanuel Macron said the state "will be extremely vigilant regarding the stability of the alliance and the group".