Olympus announced on the 28th that Stefan Kaufmann, Deputy Executive Officer, President and Chief Executive Officer (CEO), has resigned due to suspicions regarding the purchase of illegal drugs.
According to the release, the company received a report that Mr. Kaufman (56) was buying illegal drugs and immediately confirmed the facts, reported to the investigating authorities, and fully cooperated with the investigation. As a result of an internal investigation, the board of directors unanimously determined that he was likely to have engaged in behavior inconsistent with the company’s code of conduct, values and corporate culture, and asked him to resign, which he said fulfilled.
The 28th is the transition date, and Chairman Yasuo Takeuchi will assume the role of successor CEO for the time being. Mr. Kaufman has resigned as president and CEO, as well as an executive officer and nominating committee member. A company spokesman declined to comment when the drug purchase was discovered because the investigation is ongoing. In addition, the time to confirm his successor has not yet been determined.
Mr. Kaufman joined Olympus in May 2003 after working for another company. He was appointed executive officer in April 2017, director in June 2019, and CEO in April 2023. The company’s stock price has fallen for the 28th day in a row, falling 7.3% from the previous weekend to 2,630.5 yen, the lowest intraday decline since August 5.
We reached out to Kaufman for comment on the facts, but have not heard back at this time.
olympus logo
Photographer: Akio Kon/Bloomberg
Masahiro Shibano, an analyst at Citigroup Securities, said in a report that the news of Mr. Kaufman’s resignation would be negative for the stock price in the short term, but he also said that the company responded appropriately to the allegations and that the company’s performance. It would have an impact He said the impact would be limited. The company also said that Mr. Takeuchi, who has experience operating as a top management, is the most suitable successor.
Andrew Jackson, the head of Japanese equity strategy at Altus Advisors, believes that Olympus shares will continue to have a difficult time breaking above their recent peaks, and that the stock price will not have much room even after the resignation of Kaufman Showed.
Yasutake Honma, ESG analyst at Bloomberg Intelligence, said that since the company is a health care company that demands integrity, if it is true that the CEO was forced to quit his job to buy illegal drugs, there should be no damage to the image of the company. He said he wouldn’t be able to do that.
In October 2011, Olympus decided to dismiss the then president, Michael Woodford, who was accused of suspicions that led to the discovery of hidden losses of Olympus. Woodford had filed a lawsuit in the United Kingdom against the company, but the case was later settled.
| Related articles |
|---|
(Add expert opinions and update)