Archives for November 20, 2018

Nissan Motor Co.’s high-flying chairman Carlos Ghosn is to be dismissed after the company said an internal investigation found he under-reported his income by millions of dollars and engaged in other “significant misconduct.”

The Japanese broadcaster NHK said Ghosn was arrested Monday after he voluntarily submitted to questioning by Tokyo prosecutors. The prosecutors’ office did not confirm that.

The Yokohama-based company, one of the world’s largest automakers, said the violations were discovered during an investigation over several months that was instigated by a whistleblower. Ghosn, 64, also allegedly engaged in personal use of company assets, it said.

Nissan said it was providing information to the prosecutors and co-operating with their investigation. The allegations also concern a Nissan representative director, Greg Kelly, it said.

Nissan said in a statement that its CEO Hiroto Saikawa would propose to its board that Ghosn and Kelly both be removed from their posts.

“Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures,” it said.

Ghosn signed a contract earlier this year that would have run through 2022. His compensation, high by Japan’s moderate standards for executive pay, has been an issue over the years.

According to NHK and the Kyodo News Service, Ghosn made nearly 10 billion yen ($89 million) over five years through March 2015, including salary and other income from the company, but reported as if he only made 5 billion yen ($44 million), or half of what he had received.

Nissan’s annual securities report shows Ghosn received annual remuneration exceeding 1 billion yen ($8.9 million) until fiscal 2016, when shareholders voted against his pay package. His annual pay dropped to 735 million yen ($6.5 million) in 2017, down more than 30 per cent.

The Nissan-Renault-Mitsubishi group is among the biggest auto alliances in the world, selling about 10 million vehicles a year. Before joining Renault, Ghosn worked for Michelin North America.

Freedom Mobile has launched a new promotion that takes a novel approach to dealing with data overages, which can be an expensive extra cost if usage goes beyond the monthly plan’s limits.

The wireless arm of Shaw Communications Inc. is offering 100 gigabytes of extra data to new and existing customers — provided they sign up for a two-year plan with new handset for $60 per month.

The offer will be available for only a limited time in provinces served by Freedom, but the company hasn’t disclosed when it will end.

Freedom says the bonus data pool won’t expire, but will be automatically applied when a customer exceeds a qualifying plan’s normal monthly limit.

The Big Binge Bonus promotion is Freedom’s latest tactic for distinguishing itself from Canada’s national wireless carriers owned by Rogers, Bell and Telus.

In October 2017, Freedom challenged its three bigger rivals by offering a plan with 10 gigabytes per month for $50 — at the time a relatively large amount of data for the price.

The three national carriers later launched aggressive discounts and promotions in the weeks before the 2017 year-end holiday period, often the biggest selling opportunity for Canadian mobile carriers.

Ride-hailing companies could begin operations in B.C. by next fall under legislation introduced today.

Transportation Minister Claire Trevena says the government’s bill strikes a balance between meeting consumer demand and protecting public safety.

Among other things, the bill would give the Passenger Transportation Board the power to accept applications and set terms and conditions for licences covering taxis and ride-hailing services like Uber and Lyft.

It would also set rates and determine the number and coverage areas of the services.

The legislation would see the creation of a legislative committee to review and make changes to the system as well.

Green Leader Andrew Weaver says the NDP’s bill is a step forward, but he questions why the government has chosen to require driver training and class five licences rather than class four, which he says have been used successfully in Quebec.

Trevena says the experience of other jurisdictions has been used to develop British Columbia’s legislation, which is aimed at preventing gridlock, maintaining ridership on public transit, and reducing accidents caused by unsafe or inexperienced drivers.

Vancouver is one of the few major cities in Canada that does not permit ride-hailing.

The New Democrats, Liberals and Greens promised to bringing in ride-hailing during the 2017 provincial election campaign.

An all-party committee of the legislature made 32 recommendations last February to help pave the way for ride-hailing.

The report highlighted five key areas that needed to be considered when establishing regulations for the industry including pricing, insurance, licensing, and public safety. The committee also recommended updating legislation that regulates the taxi industry to “allow for equitable and fair competition.”

Canada’s main stock index was in the red in late-morning trading, weighed down by losses in energy and financial stocks, while the health-care sector, which includes the big marijuana companies, also lost ground.

The S&P/TSX composite index was down 33.78 points at 15,121.72.

In New York, the Dow Jones industrial average was down 295.11 points at 25,118.11. The S&P 500 index was down 31.78 points at 2,704.49, while the Nasdaq composite was down 151.38 points at 7,096.49.

The Canadian dollar traded lower at 75.89 cents US compared with an average of 76.02 cents US on Friday.

The January crude contract was up five cents at US$56.73 per barrel and the December natural gas contract was up 25.8 cents at US$4.53 per mmBTU.

The December gold contract was up 30 cents at US$1,223.30 an ounce and the December copper contract was up 0.55 of a cent at US$2.80 a pound.