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Former Uk Ceo Olympus - A Successful Whistleblower?

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...good challenge.... :)

Olympus chairman Tsuyoshi Kikukawa is stepping down amid continuing management turmoil at the company.

The Japanese camera and medical equipment maker has seen half of its market value wiped off the shares in the past week.

It had fired its British chief executive, Michael Woodford, after he raised questions about extraordinarily high fees and the cost of takeovers.

Olympus shares dropped 7.6% on Wednesday.

"As we have troubled our customers, business partners and shareholders over a series of press reports and a slump in share prices, chairman and president Tsuyoshi Kikukawa today returned his titles, as well as his right to representation," the company said.

Mr Kikukawa will become a director without executive rights, the company said

Shuichi Takayama, a current director, will replace him as president.

Mr Woodford alleged that he was dismissed for questioning Olympus' payment of $687m (£436m) as fees to financial advisers during the acquisition of UK medical equipment company Gyrus.

http://www.bbc.co.uk/news/business-15458505

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He's done the shareholders a great service by exposing crooked practices and shining a light on the negligent board that allowed these things to happen. I would expect him to receive a very significant compensation for unfair dismissal when this is all over. However, I think he might find it hard to get another job. Although his story is really impressive, (an English guy rising to the top of a Japanese firm), he wasn't in the CEO seat for long enough to achieve anything (except getting wind of the dirty secrets, getting them investigated and getting fired).

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Perhaps he will establish himself as some sort of a

figure - Have spreadsheet, will travel. He could be in demand to head up public inquiries into corporate wrongdoing and the like.

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He's done the shareholders a great service by exposing crooked practices and shining a light on the negligent board that allowed these things to happen. I would expect him to receive a very significant compensation for unfair dismissal when this is all over. However, I think he might find it hard to get another job. Although his story is really impressive, (an English guy rising to the top of a Japanese firm), he wasn't in the CEO seat for long enough to achieve anything (except getting wind of the dirty secrets, getting them investigated and getting fired).

I watched him interviewed on the TV - after the board meeeting when they removed him from his post, but did not remove him as a director, he said he felt his life was in danger so he drove directly to the airport to get a plane back to the UK. En route he said he met up with the FT's guy in Tokyo in order to brief him on what was going on.

The interview was up on the FT video site - might still be there.

So, whilst his compensation might be excellent, I fear that he has lifted the lid on a very lucractive can of worms that some people will be somewhat angry at being exposed.

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I watched him interviewed on the TV - after the board meeeting when they removed him from his post, but did not remove him as a director, he said he felt his life was in danger so he drove directly to the airport to get a plane back to the UK. En route he said he met up with the FT's guy in Tokyo in order to brief him on what was going on.

The interview was up on the FT video site - might still be there.

So, whilst his compensation might be excellent, I fear that he has lifted the lid on a very lucractive can of worms that some people will be somewhat angry at being exposed.

What I don't understand is why he was accepted as CEO by a board that all seem to be "in on it" when clearly he doesn't appear to be the type to go along with this alleged level of corruption. Did they just misjudge him? I find the whole thing completely bizarre.

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Mr Woodford alleged that he was dismissed for questioning Olympus' payment of $687m (£436m) as fees to financial advisers during the acquisition of UK medical equipment company Gyrus.

Lets just make that clear... HALF A BILLION POUNDS for giving some financial advice.

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Lets just make that clear... HALF A BILLION POUNDS for giving some bad financial advice.

Fixed. Apparently he also thinks they overpaid for this and 3 other companies.

Edited by Tiger Woods?

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This is a great story - it started off with the board claiming that they had ousted him for not doing things the Japanese way and for making decisions all by himself. Then it turns out he has uncovered hundreds of millions paid to some shadowy "adviser". What is so funny compared to a Western company is that he still works there! In the West, once a CEO goes, their employment is terminated.

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What I don't understand is why he was accepted as CEO by a board that all seem to be "in on it" when clearly he doesn't appear to be the type to go along with this alleged level of corruption. Did they just misjudge him? I find the whole thing completely bizarre.

Fall guy?

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he said he felt his life was in danger

I missed that. If organized crime is involved (and it could well be) then he needs police protection now and for many years to come.

Edited by Garf

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I missed that. If organized crime is involved (and it could well be) then he needs police protection now and for many years to come.

Investment banking is involved.

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The questionable fees for the Gyrus deal were paid to companies with one sole japanese director (former banker with alleged links to Japanese organised crime) that were set up in NY and Grand Cayman and wound up soon after the money was paid (from Olympus's UK bank account). Thus giving the FBI and SFO plenty of leeway to get their teeth stuck in.

Olympus have been treated with being placed on the Tokyo stock exchange watch-list for delisting usaless thety can explain the transaction - non good for share holder value. Will be interesting to see if the directors insurance pays up given the inevitable shareholder law suits...

The board meetings should be entertaining as the board can sack people form their role on the board but only shareholders can sack / appoint directors so Mr Woodford is still on the board till next the AGM (June). Would be entertaining if the shareholders re-elect him.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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