Olympus shares slump on CEO firing

Accusations by Woodford and Olympus send market into a spin

Tags: JapanManagement skillsOlympus
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Olympus shares slump on CEO firing Olympus shares have fallen after the company fired its CEO.
By  Georgina Enzer Published  October 17, 2011

Shares in Olympus Corporation have slumped for a second day following the firing of its CEO, Michael Woodford, according to the BBC.

Woodford was the first non-Japanese CEO the company had employed.

Olympus shares fell 22% on the Tokyo Stock Exchange on Monday, following an 18% drop on Friday.

The former CEO said that he was fired for questioning some of the company's accounting practices, but Olympus said Woodford's views were no longer in line with other managers.

"Michael Woodford has largely diverted from the rest of the management team in regard to the management direction and method and it is now causing problems for decision-making by the management team," the company said in a statement.

The firing of the CE0 and the subsequent drama has caused concern about the future of the camera and medical equipment maker.

Woodford claimed in an interview with The Financial Times that he may have been fired for questioning payments and advisory fees paid for acquisitions made by the company before he was employed. He said he also pointed out to the company that they should write down the value of some of the intangible assets it had received as part of its recent acquisitions.

Olympus management has denied these accusations, but the controversy has led to many investment firms slashing ratings on Olympus shares.

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