Oh, how the mighty fall.
Nissan chairman Carlos Ghosn, one of the world’s most high profile executives, was arrested after an internal investigation revealed “significant acts of financial misconduct.” Ghosn is accused of underreporting his income by millions, violating Japan’s finance and exchange laws.
How would you feel if you worked for this guy? He was making $9.7 million a year, yet he lied in order to get more.
With headlines like this, are we surprised employee faith in leadership is eroding? A recent study from global consulting firm LRN found less than a quarter of employees think their managers exhibit the qualities and behaviors of moral leaders. Only 17% say their leaders normally tell the truth.
I’m guessing the numbers for Nissan are probably even lower. Nissan’s web site says its corporate vision is “enriching people’s lives.” I don’t think the board or shareholders meant for the CEO to apply the “enriching” part solely to himself. Nissan stock plunged after he was arrested.