Olympus CEO resigns amid drug purchase allegations

In Japan on October 28, 2024, the resignation of CEO Stefan Kaufmann occurred after allegations of illegal drug purchases surfaced. Kaufmann, who became CEO in April 2023 and had been with Olympus since 2003, faced scrutiny from the company's board after a report indicated that his actions were inconsistent with Olympus's global code of conduct. Following an investigation supported by outside legal counsel, the board unanimously decided on his resignation, thus formally accepting it. This incident has led to a 6% drop in Olympus's share price, indicating investor concern over the company's leadership stability. Following Kaufmann’s exit, chairman Yasuo Takeuchi has stepped in as interim CEO while the board seeks a permanent successor. The Japanese company, known for its medical equipment, had previously struggled with its camera division and was in a transition phase to solidify its focus on health-related technologies. As the board navigates this leadership change, the implications on investor confidence and operational direction remain crucial for Olympus's future.