Shares in Olympus Corporation – the company most widely known for its camera division, which it sold in 2021 – have taken a hit following the forced resignation of CEO Stefan Kaufmann in the wake of drug allegations.

On Monday Olympus revealed it had directed Kaufmann, whose LinkedIn states he has been at the company in Europe and Japan for at least 13 years (some media reports say 21 years), to clear his desk and quit.

In a statement to the Tokyo Stock Exchange on Monday Yasuo Takeuchi, Executive Chairperson and Environmental, Social and Governance Officer said: “Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs, Olympus, in consultation with outside legal counsel, immediately investigated the facts, made a report to the investigative authorities, and cooperated fully with their investigation.”

 

Stefan Kaufmann, ex-Olympus CEO (LInkedIn).

As a result of the investigation Kaufmann “was asked to offer his resignation, which he did and which was subsequently accepted by the Board of Directors”.

Investors on the Japanese stock market gave Olympus a clip over the ear on Monday.

One share in Olympus Corporation opened the day at 2,838 Japanese Yen (A$28.20), dipped to 2,647 JPY (A$26.31) before closing out the day at 2,678 JPY (A$26.61).

Early trade on Tuesday had the stock bouncing around the 2,670 JPY mark (A$26.53).

This year stock has risen about 33 per cent.

Olympus stock 2024, year to date.

According to sources speaking to Japan’s Kyodo News, police searched Kaufmann’s residence in June but no illegal drugs were found.

The 105-year-old company – which started out manufacturing thermometers and microscopes, before moving through cameras to optics and reprography – said Takeuchi will carry out the duties of CEO “for the time being”.

Olympus sold its camera division to Japan Industrial Partners in 2021, and its cameras are still available in Australia.