Carlos Ghosn's career options
Is he a folk hero? Or a corrupt fugitive?
The public view on that question may determine whether Carlos Ghosn rejoins the business elite or whiles away his days as a pariah in exile.
Ghosn, of course, is the former CEO of auto giant Nissan who fled Japan for Lebanon in a brazen rebuke to the Japanese justice system. Japanese prosecutors say Ghosn committed financial crimes similar to embezzlement, milking the automaker for perks and cash that weren’t rightfully his. They arrested him in November 2018 and jailed him for nearly four months while building the case against him. Ghosn says it’s a “rigged” case that justified his secret flight out of the country under circumstances that are still fuzzy. He’ll provide more details during a highly anticipated press conference on Jan. 8.
For now, Ghosn, 65, is damaged goods no employer is likely to touch, regardless of his exemplary business record. He’s a globally wanted man, with an Interpol “red notice” calling for his arrest. Lebanon, Ghosn’s ancestral home, is unlikely to carry that out. But Ghosn could have trouble traveling beyond Lebanon, and he’s reportedly worried about a stealthy snatch operation. Maybe he should be.
“I think a lot more information needs to come out before Carlos will have a shot at employability,” says Karl Brauer, executive publisher at Cox Automotive. “If he can make a strong case of wrongful prosecution, something he has a much better shot at now that Japanese authorities aren’t controlling the narrative, he could definitely create leadership opportunities with other automakers.”
He ‘makes things happen’
Ghosn is legendary in the auto industry for rescuing Nissan from bankruptcy in the early 2000s and managing a tense and culturally fraught alliance with the French automaker Renault. “He’s a genius at cost-cutting and turning companies around,” says Carla Bailo, CEO of the Center for Automotive Research, who worked under Ghosn as a Nissan executive. “He’s quite good at assembling teams in a crisis. Looking for opportunities for cost reduction and cost management. Giving people authority to study and analyze and come back and take action. He just makes things happen.”
Nissan did struggle toward the end of Ghosn’s reign, as a strategy to raise sales volumes hurt profitability. That has gotten worse since his departure.
Still, many companies could undoubtedly use Ghosn’s skills, including suppliers to the top automakers. Some firms in the sprawling auto industry are privately owned, which can make it easier to hire controversial figures. But that would still require Ghosn clearing his name.
“If Ghosn is correct that this was a witch hunt, then I would imagine he will have a lot of options,” one long-time investor in the auto industry tells Yahoo Finance. “If, instead, he embezzled millions, as is alleged, then I would think he has very limited options, and certainly not with top-tier private equity.”
The obvious challenge for Ghosn is reviving his reputation without returning to Japan, where more than 99% of defendants charged with financial crimes are found guilty. A trial and acquittal in friendly Lebanon, known for pervasive corruption, probably wouldn’t do the trick. Ghosn might have to submit to legal scrutiny in France, the UK or some other European country and hope for a better outcome than he would likely have gotten in Japan.
That could be the longest journey yet for a globetrotting executive known for living on a plane. “I don’t think the auto industry’s going to take him back,” says Bailo. “Maybe outside of the auto industry, where a turnaround is required.” There are also rumors Ghosn is interested in politics. If so, raucous Lebanon might be the perfect place for him.
Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter: @rickjnewman. Confidential tip line: rickjnewman@yahoo.com. Encrypted communication available. Click here to get Rick’s stories by email.
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