Olympus, the renowned medical equipment manufacturer, announced the resignation of its CEO, Stefan Kaufmann, on Monday. Kaufmann, who had been in the position since April 2023, stepped down after an investigation into allegations of illegal drug activity, Al Jazeera reports.
Olympus initiated the investigation following an unspecified source’s claims. The board of directors, after examining the evidence, concluded that Kaufmann likely engaged in behavior violating the company’s code of conduct, core values, and corporate culture. The statement did not elaborate on the specific nature of the alleged drug activity.
Olympus Chairman Yasuo Takeuchi will assume the role of CEO temporarily, while the board’s nominating committee searches for a permanent replacement.
“Olympus apologizes deeply for the concern this has caused to our shareholders, customers, and all stakeholders,” the company said in a statement.
Kaufmann, a German national, was the first non-Japanese to hold the CEO position since Michael Woodford, who was fired in 2011 after exposing a $1.7 billion accounting scandal. Kaufmann had been a board member since 2019 and with the company since 2003.
Following the news, Olympus shares experienced a significant drop, plummeting over 7%.
Olympus, founded in Tokyo in 1919, is best known for its early camera innovations but is now a global leader in endoscopes.
This incident highlights Japan’s strict drug laws, which have impacted foreign businesspeople in the past. In 2015, Julie Hamp, a Toyota Motor executive, faced imprisonment for allegedly importing oxycodone.
