TOKYO – Olympus pushed out its chief executive after investigating an allegation he purchased illegal drugs, a stunning exit for the German native after less than two years at the helm.
The Japanese company’s shares declined more than 7 per cent after markets opened on Oct 28, the biggest intraday slide in almost three months, after it said Mr Stefan Kaufmann had resigned all positions effective immediately.
Olympus, best known as a designer of cameras and imaging gear before a pivot into medical equipment such as endoscopes, would not comment further on the case, citing an ongoing investigation. Kyodo News reported that the Japanese police were conducting their own probe.
The 56-year-old Kaufmann presided over a roughly 18 per cent stock price climb over his tenure. But that was just about half the gains the benchmark Topix index managed over the same period.
Chairman Yasuo Takeuchi will act as Olympus CEO in the interim.
The board unanimously determined that “Kaufmann likely engaged in behaviours that were inconsistent” with the company’s code, values and culture, according to an Olympus statement. As a result, he was asked to offer his resignation, it said.
The allegations surrounding Mr Kaufmann, one of the few foreigners running a blue-chip Japanese company, remain unclear.
The country has strict laws governing the use and import of drugs. In 2015, the police arrested a Toyota Motor executive on suspicion she imported the pain medication oxycodone.
It is the second time Olympus has removed a foreign-born leader.
In 2011, it fired former CEO Michael Woodford mere weeks after the British native ascended to the top job. Mr Woodford told media he suspected he got the sack because of inquiries he made into previous accounting.
Olympus in August cut its full-year operating income forecast. The Japanese company
