After firing CEO Michael Woodford four days ago, Olympus’s stock price has fallen from ¥2,480 to its current price of ¥1,417. Around 43 % drop, that cost them nearly $4 billion. Former Ceo, Woodford is now asking the UK to investigate the company’s financial expands and claiming that he was fired on the edge of the scam.
It’s known that Woodford was promoted to the role of CEO eight months ago, but after that he became suspicious about the payments that the Olympus was doing at the time. One of the most suspicious payments was made in 2008 when the company purchased a British medical company called Gyrus.
Michael Woodford had finished his report last week in which are raised numerous questions over payments for purchasing the Gyrus. After resolving this problem, Woodford demands Kikukawa’s resignation. But instead of the resignation, chairman Tsuyoshi Kikukawa held the Board meeting on Friday where 13 Japanese directors voted to fire Woodford. It’s strange that firing came just two weeks after he was praised as a successful leadership.
Kikukawa stated that all payments were ‘appropriate’. But financial analysts are still very careful because the recipient of the payment is still a pure mystery.
Latest news is that Woodford said that he wants to help the company as the shareholders, but it doesn’t seem that this situation will be easily fixed. I think that we can expect some very big changes soon in this company.