Michael Woodford (executive)
|Born||Michael Christopher Woodford
12 June 1960
|Known for||Exposing the Olympus scandal|
Michael Christopher Woodford, MBE (born 12 June 1960) is a British businessman who was formerly president and CEO of Olympus Corporation, a Japan-based manufacturer of optics and reprography products.
He was the first non-Japanese person to be appointed as the company's CEO. Within two months, he became a central figure in the Olympus scandal, having been removed from his position after serving two weeks, when he questioned sizeable fees that Olympus had paid to obscure companies (which appear to have been used to hide old losses). Woodford is one of the most highly placed executives to turn whistleblower.
Woodford was born in Staffordshire, but moved to Liverpool with his mother when he was seven after his parents divorced. A gentile, Woodford attended the King David High School, Liverpool in Liverpool.
According to the Olympus website, Woodford, a graduate of Millbank College of Commerce, joined KeyMed, a U.K. medical-equipment unit of Olympus, in 1981.
In 2008 he became executive managing director of Olympus Europa Holding GmbH. Woodford had originally flown to Tokyo to submit his resignation after Olympus purchased Gyrus, a move that would have normally been under Woodford's direct authority but instead had been arranged directly by Tsuyoshi Kikukawa, the then-chairman, president, and CEO of Olympus. Kikukawa instead made Woodford head of all of Olympus's Europe operations and gave him a seat on the board of directors.
In February 2011, due to substantial growth in the European businesses, Woodford was promoted to company president, while Kikukawa stayed on as chairman and CEO. It was reported that Woodford clashed with Kikukawa after outside media sources began investigating some of Olympus's questionable acquisitions, which eventually compelled Kikukawa to give up his title as CEO.
On 30 September 2011 Woodford was appointed chief executive officer of Olympus Corporation, after 30 years of working for the group, while Kikukawa remained as chairman of the board. He was the first non-Japanese person to be appointed as the company's CEO, making Olympus one of the few Japanese companies to be headed by a foreign businessman (others include Sony, Nissan Motors and Mazda). As the top executive officer in the company, Woodford would have been responsible for selecting his management team. At the time of Woodford's appointment, he was regarded as an unlikely choice. Reuters reports there were rumours that he only got the job because he would be "easy to control"; some Japanese observers saw Woodford, who speaks no Japanese, as the chairman Kikukawa's new pet. An article in FACTA underlined the sceptics' views, saying "The fact that the company picked a bottom-ranking foreign executive director with virtually no significant responsibilities from amongst a total pool of 25 potential candidates, including the vice-president who was responsible for medical instruments ... set tongues a-wagging." Woodford's promotion was announced through a press statement without calling a news conference. The press release, which was full of praise for Woodford, mentioned his success in cutting costs and presented him as the "new global face of Olympus". According to Woodford, Kikukawa had reminded him privately upon appointing him president: “I am the one who has the authority to hire and fire, and to decide remuneration for board members and the next tier down of management," thus signalling Woodford was "little more than his puppet". Woodford recalls that there appeared to be "strange goings-on at the company" in 2008 – for example, the Gyrus acquisition ought to have been within his scope but was instead handled from Tokyo. So Woodford set off on a trip to Tokyo to resign, but decided to stay after Kikukawa promoted him to oversee all of Olympus’ European businesses and appointed him to the main Olympus board.
|“||Woodford himself was soon to realise that his appointment to CEO was in name only.||”|
—Nikkei Business 1 November 2011
Upon becoming CEO, Woodford discovered that hundreds of millions of dollars had been transferred from Olympus to advisers and companies located in places such as the Cayman Islands. After attempting to seek answers as to why the questionable transactions took place, he was dismissed from his position as President and CEO on 14 October 2011, although he retained his seat on the board of directors. As a result of Woodford's ouster, board chairman Kikukawa reassumed the titles of president and CEO but resigned these positions on 26 October 2011 and was succeeded by Shuichi Takayama. 19 top current and former executives, including six present board members (including Takayama who resigned all his positions and left the company at an extraordinary general meeting in April 2012) are defendants to a lawsuit.
Fearing for his safety after his dismissal, Woodford immediately left Japan and flew to England. After arrival in London he offered to speak to investigators. He returned to Tokyo on 23 November and later met with investigators and, under police escort, Olympus personnel.
On 30 November 2011, Woodford resigned from the Olympus board but said that he had an "alternative plan" to manage the company by staging a proxy fight. However it has been reported that Woodford was rejected by Olympus's institutional investors because they were "uncomfortable with the Englishman's combative style and also his plans to recapitalise the company through private equity or a rights issue". On 6 January 2012, on failing to secure support from Japanese institutional shareholders, Woodford announced that he would abandon his proxy fight to take control of the Olympus board. Instead, his lawyers had initiated legal proceedings in London seeking unspecified damages for dismissal from his four-year contract. Woodford said that the 12-week public scandal had taken an enormous emotional toll on him and his family: “I’m not superman. I can’t change opinion in Japan in such a profound way. That has to come from within.”
In November 2012 Woodford published a book about the Olympus scandal.
- Sunday Times Businessperson of the Year 2011
- The Independent Businessperson of the Year 2011
- The Sun Businessperson of the Year 2011
- "Board of Directors, Corporate Auditors and Executive Officers". Olympus Corporation. 29 June 2011. Archived from the original on 9 February 2012. Retrieved 9 February 2012.
- "Olympus chairman Tsuyoshi Kikukawa quits amid scandal". BBC News. 26 October 2011. Retrieved 18 November 2011.
- Curwen, Lesley (15 November 2011). "Former Olympus boss Woodford blows whistle on company". BBC News. Retrieved 15 November 2011.
- "Michael Woodford would like a chance to redeem Olympus". New York Times. 26 October 2011.
- Mariko Yasu (27 October 2011). "Olympus Chairman Kikukawa Quits After Takeover Allegations Hammer Shares". Archived from the original on 9 February 2012. Retrieved 9 February 2012.
- Cooper, Chris (17 Oct 2011). "Olympus Adviser Payments Should Be Probed, PWC Report Says". Bloomberg BusinessWeek. Archived from the original on 11 Nov 2011. Retrieved 11 Nov 2011.
- "Michael Woodford – President and Chief Executive Officer". Olympus Corp. Archived from the original on 25 Nov 2011. Retrieved 25 Nov 2011
- Ridley, Kirstin; Smith, Alexander (1 November 2011). "Special Report: In Japan, a foreigner speaks out", Reuters. Archived from the original on 21 November 2011.
- Tabuchi, Hiroko; Protess, Ben (26 October2011) "At Olympus, Western Questions for Old-School Way". The New York Times Archived from the original on 16 November 2011.
- "Michael Woodford, ex-CEO of Olympus: 'Let me tell the true story behind my dismissal'", Nikkei Business. 1 November 2011. Archived from the original on 25 November 2011.
- "Olympus Corporation Resolved Dismissal of President Michael C. Woodford". Olympus Corp. Archived from the original on 25 Nov 2011. Retrieved 25 Nov 2011
- Olympus website/exposure by Michael woodford
- "Olympus row fuels investor activism". AFP. 9 February 2012. Archived from the original on 9 February 2012. Retrieved 9 February 2012.
- Russell, Jonathan (2 November 2011). "Former Olympus chief Michael Woodford 'not safe in Japan'". Daily Telegraph. Retrieved 18 November 2011.
- Russell, Jonathan (25 November 2011). "Olympus whistleblower Michael Woodford meets Japanese authorities". Daily Telegraph. Retrieved 25 November 2011.
- "Olympus whistleblower Michael Woodford quits board". 1 December 2011.
- "Olympus sues execs over scandal, shares surge". Reuters. 10 January 2012. Retrieved 13 January 2012.
- Soble, Jonathan; Lucas, Louise (6 January 2012). "Woodford abandons bid to lead Olympus". Financial Times. Archived from the original on 6 January 2012. Retrieved 6 January 2012.
- "Former Olympus chief gets £10m payoff". Guardian. 8 June 2012. Retrieved 14 December 2012.
- book info on Penguin Books site.
- Armitage, Jim (23 December 2011). "Michael Woodford: Unbowed despite the death threats". Independent. Retrieved 14 December 2012.