The board of Olympus has told Stefan Kaufmann – its President and CEO – to walk the plank following allegations Kaufmann purchased “illegal drugs”.

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. 

Yasuo Takeuchi, CEO of Olympus Corporation

“Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann likely engaged in behaviors that were inconsistent with our Global Code of Conduct, Our Core Values, and our corporate culture.”

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”.

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”.

Stefan Kaufmann Olympus, via LinkedIn.

The Nominating Committee of the Board is meeting to consider all options for the successor to the CEO. 

“Olympus apologises deeply for the concern this has caused to our shareholders, customers and all stakeholders,” Takeuchi said.

According to his LinkedIn profile, Kaufmann has been with Olympus for 13 years.

Olympus Statement.

 

As of Monday afternoon the page was showing him working at Olympus.

This is not the first scandal to engulf the company. In 2011 former chief executive Michael Woodford exposed his colleagues for falsifying accounts to conceal billions of dollars of losses. The company suffered huge reputational damage and its stock took a bath.

According to promotional material for the book Woodford wrote about his experience: “He turned to his fellow executives — including the chairman who had promoted him, Tsuyoshi Kikukawa — for answers. But instead of being heralded as a hero for trying to save the company, Woodford was met with vague responses and hostility — a clear sign of a cover up.

“Undeterred, he demanded to be made CEO so he could have more leverage with his board and continue to search for the truth. Then, just weeks after being granted the top title, he was fired in a boardroom coup that shocked Japan and the business world at large. Worried his for­mer bosses might try to silence him, Woodford immediately fled the country in fear of his life and went straight to the press — making him the first CEO of a global multinational corporation to blow the whistle on his own company.”

Olympus sold its camera division to Japan Industrial Partners in 2021.