— This is the script of CNBC's news report for China's CCTV on November 20, 2018, Tuesday.
We see that after Ghosn arrested because of financial misconduct, NISSAN MITSUBISHI and RENAULT are trying to demarcate him, in order to minimize the impact on the company level. And the development of this event has led many to compare Ghosn to the leaders of the companies recently affected by the scandal. Here's a review. The first one is TESLA's CEO Elon Musk, the U.S. SEC initiated security fraud investigation to him regarding his speech about taking TESLA private on social media in Sep.
Ultimately, this event was settled with the SEC in the form of Musk's resignation as chairman for at least three years and the payment of a hefty fine. Musk has remained CEO of the company since stepping down as chairman, Robin Deholm took office as new chairman, and the board will have 2 new independent directors to balance musk's power and words.
Another one before Musk is the ex-CEO of VOLKSWAGEN Martin Winterkorn. VOLKSWAGEN paid around $30billion fine because of the diesel gate scandal, and then Winterkorn was formally charged by the U.S. justice department.
Soon after, Stadle, the ex-CEO of VOLKSWAGEN's AUDI brand, was also arrested by Munich prosecutors, in June that year; he was exempted from all position in AUDI board and VOLKSWAGEN board.
Many may also remember Martin Sorrell, CEO of WPP, which is the world's biggest advertising agency, was formally investigated for financial irregularities in April, in the same month later, WPP announced the investigation was end, and Sorrell will resign. WPP didn't disclose the investigation result and the specific reason of Sorell's resignation.
Sorrell's resignation apparently shocked the global advertising industry. After launching WPP 33 years ago, Sorrell transformed it from a small company into a global advertising giant with more than 200,000 employees in 112 countries. Sorrell is also the longest-serving chief executive of FTSE 100 companies, the most notable CEO and one of the highest-profile paid executives in the UK
Finally, there was the SAMSUNG incident last year. Jay Y Lee, the vice President of SAMSUNG electronics, was accused by prosecutors last year of bribing former South Korean President Park Geun-Hye for preferential policies.
In Aug last year, the first trial of the Seoul central district court ruled Jay Y Lee with bribery, embezzlement, illegal transfer of assets, concealment of criminal income and perjury, sentenced him to 5 year in jail. In the second trial, he was sentenced to four years' probation, and released in court
All these scandals have undoubtedly caused great damage to the company's image. How to restore public trust when stock prices are highly volatile is what companies will focus on in the wake of the scandal