Nissan And Its Ex-Chairman Agree To Settlement With SEC

Nissan faced allegations of misleading investors about a $140 million retirement plan for its ex-chairman. The SEC fined Nissan $15 million, and former chairman Carlos Cone $1 million, barring him from serving as an officer or director for 10 years. The SEC's inquiry revealed a scheme to hide $90 million in compensation and increase Cone's retirement by $50 million. Japanese prosecutors also charged Nissan and Cone with financial misconduct. In response to profit drops, Nissan announced plans to cut 12,500 jobs, with analysts linking the decline to the ongoing legal drama. Cone denies any wrongdoing.

What penalty did Nissan agree to pay according to the SEC's announcement?

• $20 million

• $15 million

• $10 million

• $25 million

What restriction was placed on Carlos Cone as part of the agreement with the SEC?

• He cannot travel outside Japan for 5 years.

• He cannot serve as an officer or director of a publicly traded company for 10 years.

• He cannot engage in any financial transactions over $1 million.

• He cannot serve as a CEO of any company.

What was the amount of compensation that was concealed from public disclosure?

• $70 million

• $50 million

• $90 million

• $110 million

What was the reason for Nissan's plan to cut 12,500 jobs?

• An increase in production costs

• A drop in profits

• A change in management

• A merger with another company

What do many analysts believe fueled the drop in Nissan's profits?

• Increased competition

• Rising material costs

• The drama surrounding Carlos Cone

• A global economic downturn