Out with the old, in with the new: Olympus names a new board

Shareholders of Olympus have approved the Japanese company’s decision to bring in fresh blood to serve on its board in an effort to move past the infamous $1.7 billion scandal that shook the nation.

At the company’s shareholder meeting on Friday, the new 11-member board was announced. It includes eight outside executives. The old board members have agreed to step down, according to reports.

The company tapped an Olympus veteran Hiroyuki Sasa to serve as president. Yasuyuki Kimoto, ex-senior managing director of Sumitomo Mitsui Banking, was named chairman and Hideaki Fujizuka, a former executive officer of Bank of Tokyo-Mitsubishi UFJ is expected to serve as director.

Recovering from a serious financial scandal is not easy. In January, the company pledged to revamp its internal practices, reform its corporate governance, raise more capital and restore its credibility. This move came just months after whistleblowing chief executive of Olympus Michael Woodford was sacked after uncovering the company’s shoddy accounting practices.

Eiichi Suzuki, managing director of Nintendo, told Reuters, ‘the banks are there ... they will help in terms of capital,’ [however] ‘the company already has first-class technology, so now it's a matter of management.’  

In March, three of the company’s former executives and disgraced ex-president Tsuyoshi Kikukawa were charged for trying to hide the company’s financial losses.