Moneycontrol
Last Updated : Dec 22, 2018 08:45 AM IST | Source: Moneycontrol.com

Biggest CEO departures of 2018: Carlos Ghosn, Binny Bansal and other execs who fell from grace

The bigger they are, the harder they fall. Time and again, CEOs of top companies around the world have often found themselves in trouble. 2018 was no exception for these CEOs.

Moneycontrol News @moneycontrolcom
Carlos Ghosn | Nissan Motor Company | The long-serving boss of the Japanese automobile company, whose list of feats include reviving Renault, saving Nissan and re-energising the auto industry, was arrested by Japanese authorities over allegations of understating his compensation and swindling money from Nissan for personal use. Ghosn along with representative director Greg Kelly was taken into custody for failing to declare around $44 million on Nissan's security reports submitted over five years starting 2011. He was arrested in Tokyo on November 19 and was later sacked from the Nissan board. (Image: Reuters)
1/9

Carlos Ghosn | Nissan Motor Company | The long-serving boss of the Japanese automobile company, whose list of feats include reviving Renault, saving Nissan and re-energising the auto industry, was arrested by Japanese authorities over allegations of understating his compensation and swindling money from Nissan for personal use. Ghosn along with representative director Greg Kelly was taken into custody for failing to declare around $44 million on Nissan's security reports submitted over five years starting 2011. He was arrested in Tokyo on November 19 and was later sacked from the Nissan board. (Image: Reuters)

Binny Bansal | Flipkart | The co-founder of Flipkart resigned in November after an independent probe into an allegation of serious personal misconduct. The development came a few weeks after Walmart acquired a 77 percent stake in Flipkart for $16 billion. (Image: Reuters)
2/9

Binny Bansal | Flipkart | The co-founder of Flipkart resigned in November after an independent probe into an allegation of serious personal misconduct. The development came a few weeks after Walmart acquired a 77 percent stake in Flipkart for $16 billion. (Image: Reuters)

Nirav Modi | Nirav Modi Global Diamond Jewellery House | The diamond merchant, along with his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated Punjab National Bank of about Rs 14,000 crore through issuance of fraudulent letters of undertakings (LoUs). This is one of the biggest financial frauds in India. Both Modi and Chokshi fled India before they could be arrested. (Image: Reuters)
3/9

Nirav Modi | Nirav Modi Global Diamond Jewellery House | The diamond merchant, along with his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated Punjab National Bank of about Rs 14,000 crore through issuance of fraudulent letters of undertakings (LoUs). This is one of the biggest financial frauds in India. Both Modi and Chokshi fled India before they could be arrested. (Image: Reuters)

Chanda Kochhar | ICICI Bank | The former MD and CEO of India’s second largest private lender had to seek early retirement over allegations of conflict of interest over loans to Videocon Group, worth Rs 3,250 crore (ICICI was part of the consortium of lenders). Kochhar’s husband Deepak Kochhar had a business relationship with Videocon Group. (Image: Reuters)
4/9

Chanda Kochhar | ICICI Bank | The former MD and CEO of India’s second largest private lender had to seek early retirement over allegations of conflict of interest over loans to Videocon Group, worth Rs 3,250 crore (ICICI was part of the consortium of lenders). Kochhar’s husband Deepak Kochhar had a business relationship with Videocon Group. (Image: Reuters)

Usha Ananthasubramanian | Allahabad Bank | The former MD and CEO of the oldest joint stock bank in India came under the lens of the CBI earlier this year in connection with the Rs 14,000-crore fraud at PNB by diamond merchant Nirav Modi and his uncle Mehul Choksi. Ananthasubramanian was the MD and CEO of PNB before she moved to Allahabad Bank.
5/9

Usha Ananthasubramanian | Allahabad Bank | The former MD and CEO of the oldest joint stock bank in India came under the lens of the CBI earlier this year in connection with the Rs 14,000-crore fraud at PNB by diamond merchant Nirav Modi and his uncle Mehul Choksi. Ananthasubramanian was the MD and CEO of PNB before she moved to Allahabad Bank.

Ramesh Tainwala | Samsonite | The global chief executive of the luggage company quit following allegations of falsifying his academic credentials. Tainwala became Samsonite’s Asia-Pacific head in 2011 and global CEO in 2014. According to allegations, Tainwala never completed the PhD programme that he claimed to have enrolled in 1992.
6/9

Ramesh Tainwala | Samsonite | The global chief executive of the luggage company quit following allegations of falsifying his academic credentials. Tainwala became Samsonite’s Asia-Pacific head in 2011 and global CEO in 2014. According to allegations, Tainwala never completed the PhD programme that he claimed to have enrolled in 1992.

Vikram Kothari | Rotomac | The owner of the stationery brand was arrested by CBI earlier this year for defaulting a bank loan of Rs 800 crore. In 1999, Vikram took charge of Rotomac. During his tenure, Rotomac emerged as a top player in the writing instruments market. Its promotional tagline “likhtey, likhtey, love ho jaaye” became popular and Rotomac was then endorsed by Bollywood actor Salman Khan and Raveena Tandon.
7/9

Vikram Kothari | Rotomac | The owner of the stationery brand was arrested by CBI earlier this year for defaulting a bank loan of Rs 800 crore. In 1999, Vikram took charge of Rotomac. During his tenure, Rotomac emerged as a top player in the writing instruments market. Its promotional tagline “likhtey, likhtey, love ho jaaye” became popular and Rotomac was then endorsed by Bollywood actor Salman Khan and Raveena Tandon.

Rana Kapoor co-founded Yes Bank in 2004. Kapoor, who is the managing director and CEO of Yes Bank, had also co-founded Rabo India Finance in a joint venture with the Netherland’s Rabobank in 1998 but sold his stake five years later. After the death of co-founder Ashok Kapur, the partner families got into dispute which finally went to the Bombay High Court in 2013. On 17 September, the Reserve Bank of India (RBI) restricted Kapoor’s term as CEO of Yes Bank to 31 January 2019. The central bank never gave a reason for not extending his tenure, but it is believed that it has something to do with under-reporting of the bank’s bad loans.
8/9

Rana Kapoor co-founded Yes Bank in 2004. Kapoor, who is the managing director and CEO of Yes Bank, had also co-founded Rabo India Finance in a joint venture with the Netherland’s Rabobank in 1998 but sold his stake five years later. After the death of co-founder Ashok Kapur, the partner families got into dispute which finally went to the Bombay High Court in 2013. On 17 September, the Reserve Bank of India (RBI) restricted Kapoor’s term as CEO of Yes Bank to 31 January 2019. The central bank never gave a reason for not extending his tenure, but it is believed that it has something to do with under-reporting of the bank’s bad loans.

Shikha Sharma | Axis Bank | The MD and CEO of the private lender, who is serving her fourth term, has decided to shorten her tenure by more than two years. Sharma’s decision came after the RBI questioned the bank’s performance and its deteriorating asset quality. Under Sharma’s tenure, Axis Bank – the country’s third largest private lender – reported its gross non-performing assets (NPAs) rising from 0.96 percent in March 2009 to 5.28 per cent in December 2017. Axis Bank has also been pulled up twice by the central bank for under-reporting bad loans for financial years 2016 and 2017.
9/9

Shikha Sharma | Axis Bank | The MD and CEO of the private lender, who is serving her fourth term, has decided to shorten her tenure by more than two years. Sharma’s decision came after the RBI questioned the bank’s performance and its deteriorating asset quality. Under Sharma’s tenure, Axis Bank – the country’s third largest private lender – reported its gross non-performing assets (NPAs) rising from 0.96 percent in March 2009 to 5.28 per cent in December 2017. Axis Bank has also been pulled up twice by the central bank for under-reporting bad loans for financial years 2016 and 2017.

First Published on Dec 22, 2018 08:34 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant