New Olympus CEO fired after raising questions on $1.5B in hidden losses

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Olympus's new president, Shuichi Takayama, continued the company's war of words with its former CEO, saying at a news conference Wednesday that Mr. Woodford was let go because he tended to "act on his own, without consulting others."

Mr. Woodford's allegations have rocked Olympus, pushing its shares down 56% since Oct. 13, the day before Mr. Woodford was fired. Several big Olympus shareholders have demanded greater disclosure about the deals. In one instance, Olympus paid nearly $700 million to a financial adviser based in the Cayman Islands for its assistance on a $1.9 billion purchase. In another, Olympus bought three small, unprofitable firms for ¥73.5 billion ($966 million), then wrote down three-quarters of their value the next year.

The transactions have attracted the attention of regulators and law enforcement authorities in the U.K. and the U.S.—and stirred activity among Japan's corporate watchdogs, often seen as more passive than their Western counterparts. The Tokyo Stock Exchange on Wednesday urged listed companies to enhance their corporate governance and ensure that compliance measures are implemented. The exchange also said it is strengthening cooperation with other financial regulators to make sure information is disclosed quickly.

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