Pixiq

Olympus stock plummeted in value by 24 % following the dismissal last  Friday of Michael C Woodford, the first non-Japanese president of the company. Mr Woodford was appointed as CEO just six months ago and his departure has wiped out $3.2 billion from the market value of the company.

The surprise action comes less than a fortnight after a report was published in which Mr Woodford’s role since his appointment was widely praised. Mr Woodford was sacked on Friday after requesting the resignation of company chairman Hisashi Mori and that of  Tsuyoshi Kikukawa (Mr Woodward’s replacement as CEO)

Although Olympus is determinedly portraying the matter as an east-west  “class of management styles” the dismissal follows the presentation by Mr Woodford of an independent report he had commissioned into generous payments to advisers when Olympus bought Gyrus (a UK-listed medical company) for  $2.2 bn in 2008.

Mr Woodford has now handed his correspondence to the UK’s SFO (Serious Fraud Office) after failed attempts to get answers from Olympus. Payments were allegedly made from UK-based accountants and thus come within the SFO's jurisdiction. The size of the commission paid is stated, by Mr Woodford, to stand at $687m – 36.1% of the price of the deal. Hisashi Mori, executive VP at Olympus claims the true figure is a half of this.

Olympus are threatening legal action against Mr Woodford (Reuters) for disclosing confidential information after he was sacked. However, Mr Woodford has said he welcomes further investigation of this dispute though such transparency in business matters seems not to be the norm in Japan. Mr Woodford said “We have come into this firestorm of scrutiny and publicity which normally would not be the case. It’s so extreme. They obviously fear something much greater than the publicity. I can find no other explanation.”