Japanese camera giant fires CEO facing illegal drug allegations – Times of India

Japanese camera and medical equipment manufacturer, Olympus, has dismissed its global CEO, Stefan Kaufmann. According to a report by the news agency Reuters, the company made this announcement following allegations of Kaufmann’s illegal drug purchases. Since the announcement, the company’s shares have fallen by 6%.
Kaufmann, a German national who assumed the role in April 2023, was brought in to expand Olympus’ medical equipment business. His predecessor, Yasuo Takeuchi, will return as the interim CEO.

What the company said

In a statement to Reuters, the company said: “Upon receiving an allegation that Mr Stefan Kaufmann had purchased illegal drugs … Olympus, in consultation with outside legal counsel, immediately investigated the facts. Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann likely engaged in behaviours that were inconsistent with our global code of conduct, our core values, and our corporate culture.”
The exact details of the allegations against Kaufmann remain unclear. Olympus also hasn’t provided further information about the circumstances leading to his dismissal. However, the statement noted that Kaufmann complied after the board asked for his resignation.
Another report by the Japanese news agency Kyodo citing an unidentified investigative source claimed that police found no illicit substances despite searching Kaufmann’s home. A Tokyo Metropolitan Police spokesperson also stated that the information wasn’t disclosed by them.
Kaufmann, a 20-year veteran of Olympus, assumed the CEO role shortly after the company received warnings from the US FDA regarding regulatory violations. His focus was on addressing these issues and expanding the company’s medical technology business.

Japan’s strict corporate rules

This is not the first time Olympus has faced controversy with its foreign executives. In 2011, British CEO Michael Woodford was fired after uncovering accounting fraud.
Apart from this, in 2015, Toyota Motor’s American executive Julie Hamp was arrested on suspicion of illegally importing Oxycodone painkillers into Japan.