Carlos Ghosn (Photo/VCG)

Nov. 20 (NBD) -- Nissan Chairman Carlos Ghosn, one of the auto industry's most high-profile executives, had been arrested in Japan after an internal investigation found "significant misconduct" by him and another top executive Greg Kelly, the Japanese carmaker announced at an emergency conference on Monday.

The internal probe, which had been conducted over the past several months, revealed that Carlos Ghosn had been under-reporting his salary in securities filings submitted to the Tokyo Stock Exchange by approximately 5 billion yen (44 million U.S. dollars) and misappropriating company funds for many years.

Upon the news, shares of France-based Renault plunged. And, Nissan shares fell by 6 percent on Tuesday.

Ghosn's arrest has stunned Japan's auto industry and will have a big impact on the business practice of Japanese carmakers, the country's daily newspaper Sankei Shimbun commented.

Nissan released a statement on Monday, saying that the company's CEO Hiroto Saikawa will recommend the board to remove Ghosn from the positions as Chairman and Representative Director.

Nissan also stated that it had been providing information to the Japanese Public Prosecutors Office and had been fully cooperating with their investigation.

Ghosn, aged 64, has served as the chairman and CEO of France-based Renault, chairman and CEO of Japan-based Nissan, and chairman of Mitsubishi Motors. He is also chairman and CEO of the Renault–Nissan–Mitsubishi Alliance, the strategic partnership overseeing Nissan, Mitsubishi and Renault through a unique cross-shareholding agreement.

In 2017, the world's largest automotive alliance sold 10.61 million vehicles worldwide, only second to VW's sale of around 10.74 million units.

Ghosn is hailed as the "savior" of Nissan for pulling the company back from the brink of bankruptcy and returning the company to profitability. In 2004, the Japanese emperor, Akihito, awarded him the Japan Medal with Blue Ribbon in recognition of his role in turning around Nissan's fortunes.

Taking important positions in Renault, Nissan, and Mitsubishi, Ghosn has been one of the highest-paid executives in Japan and France for years, although he also attracted criticism for his high salary.

He received an equivalent of 1.1 billion yen (9.72 million U.S. dollars) in his final year as Nissan CEO. Renault shareholders approved Ghosn's 8.5-million-U.S. dollar package for 2017.

In 2016 and 2017, Ghosn's salary at Renault was questioned publicly by French government officials and a shareholder group. But this year, he agreed to a 30 percent pay cut in return for another four-year term as chief executive.

Email: gaohan@nbd.com.cn