Olympus Announces CEO Resignation Amid Drug Allegations

TOKYO (Reuters) – Japanese endoscope manufacturer Olympus Corp announced on Monday that Chief Executive Stefan Kaufmann has stepped down following allegations he purchased illegal drugs, leading to a 6% drop in shares.

Kaufmann, a German national who took the helm in April last year, was tasked with expanding the company’s medical equipment business after his predecessor, Yasuo Takeuchi, managed asset sales for years.

For the time being, Takeuchi will resume CEO responsibilities, as stated by Olympus.

In a statement, Olympus mentioned, "Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs, Olympus, in consultation with outside legal counsel, immediately investigated the facts."

The Board of Directors determined that Kaufmann likely engaged in behavior inconsistent with the company’s global code of conduct, core values, and corporate culture.

Kaufmann, 56, was asked to resign and complied with the request; Reuters was unable to reach him for comment.

Olympus' stock fell 6%, on track for its largest one-day decline in nearly three months. Over the last year, the company's shares have increased by 35%, outperforming the Nikkei 225's 24% rise.

Olympus has experienced significant corporate scandals in the past. Thirteen years ago, its first foreign CEO Michael Woodford exposed accounting fraud related to acquisitions. Woodford was dismissed shortly after his appointment and lost a struggle for control of Olympus.