Japanese camera giant fires CEO facing illegal drug allegations

Japanese camera and medical equipment manufacturer, Olympusdismissed its global CEO, Stefan Kaufmann. According to Reuters news agency, the company made this statement following allegations that Kaufmann had purchased illegal drugs. The company’s shares have fallen 6% since the announcement.
Kaufmann, a German national who took on the role in April 2023, was brought in to expand Olympus’ medical equipment business. Its predecessor, Yasuo TakeuchiHe will return as interim CEO.

What the company says

The company said in a statement to Reuters: “Upon receipt of 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 had most likely purchased global drugs.” Acting contrary to our code of conduct, core values ​​and corporate culture.”
The exact details of the allegations against Kaufmann remain unclear. Olympus also did not provide further information about the circumstances that led to his dismissal. However, the statement stated that Kaufmann fulfilled this request after the board of directors asked for his resignation.
Another report by the Japanese news agency Kyodo, based on an unidentified investigative source, claimed that although the police searched Kaufmann’s home, no illegal substances were found. A Tokyo Metropolitan Police spokesman also stated that the information was not disclosed by them.
Kaufmann, a 20-year veteran of Olympus, took on the CEO role shortly after the company received warnings from the US FDA regarding regulatory violations. The focus was on solving these problems and expanding the company’s medical technology business.

Japan’s strict corporate rules

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