Briton Scales Heights of Olympus

[Taro Toporific]

[matsuki]

LOL, I missed this news while camping at a biker matsuri gathering type thing. One down, how many to go? Maybe the Yen will never reach lower than 70 afterall...

[Samurai_Jerk]

[Catoneinutica]

From Taro's FT/Alphaville link above:





-catone
-promote penetration into consumers via the magic of shiitake fungal hyphae - why didn't I think of that?!

[Russell]

-promote penetration into consumers via the magic of shiitake fungal hyphae - why didn't I think of that?!

Isn't penetration of its users the purpose of cosmetics in the first place?

[matsuki]

promote penetration into consumers

..instead they penetrated stockholders with a well lubed kancho

[wagyl]

..instead they penetrated stockholders with a well lubed kancho

Stretching (ewwww) that metaphor, I thought the issue here was that they didn't use sufficient lube. Enough lube and they could have retired before it all slithered out again!

[2triky]

Stretching (ewwww) that metaphor, I thought the issue here was that they didn't use sufficient lube. Enough lube and they could have retired before it all slithered out again!

F*cked.

No Vaseline, just a match & a little bit of gasoline.

[matsuki]

Stretching (ewwww) that metaphor, I thought the issue here was that they didn't use sufficient lube. Enough lube and they could have retired before it all slithered out again!

No no, it was plenty lubed, so well that the receivers didn't know they were receiving it. Then they brought in some FG and when he realized where he was putting his fingers, he quickly washed his hands but being FG, he didn't have a towel with him. Soooo they quickly escorted his barbarian ass out of the office, blaming his lack of conforming to Japanese towel etiquette.

[BigInJapan]

[Coligny]

Olympus bought buy Essilor for pennies in 3... 2... 1...

After all, successfully correcting Japanese fuck ups is becoming some sort of nationnal tradition...

[Russell]

Olympus bought buy Essilor for pennies in 3... 2... 1...

After all, successfully correcting Japanese fuck ups is becoming some sort of nationnal tradition...

I do not get the point. Essilor appears to be a successful company. Maybe they can buy Olympus?

Now, I do not wish to create the impression that the French are business-savvy in general. After all, the whole of Europe (and beyond) is scrambling to bail out the French banks from their Greek bond purchases, their Italian bond purchases, ...(what else is to follow?).

[Coligny]

I do not get the point. Essilor appears to be a successful company. Maybe they can buy Olympus?

Yeah, that's why I talk aboot Essilor BUYING olympus... the same way Renault bought Nissan just before the last worker was getting ready to turn of the lights...

[matsuki]

Olympus bought buy Essilor for pennies in 3... 2... 1...

After all, successfully correcting Japanese fuck ups is becoming some sort of nationnal tradition...

We all know they'll have plenty of chances. This coverup is looking larger and larger everyday.

[Mulboyne]

There are a few interesting developments in this affair.

The domestic media is now all over the case after a very slow start. So far, they are just catching up with reporting which has already appeared overseas: the involvement of ex-Nomura bankers; the Cayman Island funds etc. It's disappointing they didn't cover this ground earlier but they are there now. It also means the local attitudes to Olympus management are increasingly hostile and suspicious, which will be an important factor in how this all plays out.

Woodford has an interview with the Daily Telegraph where he tells how a Japanese business friend translated the FACTA piece for him an onsen resort. That should make for a good scene in any movie version: naked foreigner learns the naked truth.

He has some general observations about Japanese management;

Woodford said that "many more things" are now likely to be revealed about a company that has appeared unable to come clean about the practices in its business. He said that "a child" presented with the evidence he circulated internally before he was told to leave would have realised something was wrong...

...Some of the values which helped Japan rebuild after the Second World War are now, Woodford argues, in danger of strangling the country's business sector. The country needs, he says, thorough reform. "Prime Minister Yoshihiko Noda said he doesn't want the world to think that corporate Japan is like Olympus," Woodford said. "My view is that the thing that is profoundly wrong in Japan is the cross-shareholding. It arose after World War Two alongside [the notions of] consensus and harmony, and it has served the country well.

"But now the way the world is, what has happened in Japan is that everyone owns each other so it is a taboo to criticise another company and you never sell the stock. That has led to a situation where managements can stay unless a company goes into liquidation, no matter how incompetent they are. Olympus has no remuneration committee. There is no appointments committee. So the gift of the next presidency is in the hands [of the present one].That creates a culture of sycophancy and yes men. These are common elements that exist in Japan. The non-executive directors, [they are] jobs for retired old boys. There are issues here that would be common in many Japanese companies."

Koji Miyata, a former Senior Executive Managing Officer at Olympus, has now set up a bilingual site to campaign for changes at the company. He is openly calling for Woodford to be brought back to restore confidence in the firm. You can read his open letter to employees in English here. Miyata isn't operating in a PR vacuum either. He has already given an interview to the Asahi (Japanese) to explain his stance. The paper links to his site in that report.

I've seen some people wondering why current President Takayama hasn't openly embraced Woodford now that he has distanced himself from Kikukawa. The answer is quite simple. Even if Takayama can show that he was in the dark about the fraud, he knows that Woodford would only return if the old board was dismissed. He's still hoping he can stay out of trouble while offering himself as much-needed continuity for the company.

That would be impossible with Woodford in charge so Takayama is still pushing the line that the Englishman is a wa-buster who would disrupt everything still further. Not many are buying that at the moment. If Olympus is delisted from the TSE, however, it might in fact hand more decision-making power to domestic institutions. Many foreign funds who own the stock, only have a mandate to do so if Olympus remains a listed company. Already, the Government of Singapore has sold most of its 2% holding and others may be following suit. They could still initiate legal proceedings against management but, if they were no longer shareholders when management decisions are being put to a vote, they would have no say.

[2triky]

Given the egregious nature of accounting irregularities and outright deception, it begs the question what Olympus thought Woodford would accomplish given the fact he was ostensibly given a mandate to reform the company?

Was it "let's hope he doesn't find out" and hope for the best?

[Yokohammer]

... He is openly calling for Woodford to be brought back to restore confidence in the firm ...

This ... is the biggest question in my mind at the moment.

The whole saga is utterly fascinating. The way it has played out thus far has been brilliant in a "David topples Goliath" sort of way. And a call for Woodford's return is definitely the next step in a perfect plot.

So now, if all agree that Woodford should be brought back in to make things right, d'ya think he'll do it? After all of this I'm pretty sure he'll have multiple offers/options that would probably look better than returning to a sinking ship. On the other hand he might see more value in the challenge of trying to steer Olympus back on course. His decision would speak volumes about him as a person.

I'm on the edge of my seat.

[Mulboyne]

So now, if all agree that Woodford should be brought back in to make things right, d'ya think he'll do it?

If you read that Telegraph interview, he says he wants to return.

When this story first broke, I did wonder whether we were in danger of overestimating Woodford's ability to run a major Japanese company, regardless of how justified his allegations were. He has now been proved right but it doesn't indicate whether he has the full range of skills necessary. He may well have them but he's still unproven.

Now, however, I don't think that matters. What seems more important is what Woodford represents. He's a company man who others can rally around and the company needs a figurehead like that. It's a bit embarrassing to have an Olympus meishi right now and the rank and file need to feel proud of what they do.

If you reach outside the company, there aren't many executives with a stronger claim than Woodford so he should probably be given the job, working with a board he can trust.

[Dreamy_Peach]

If he does decide to return then he's certainly a bigger man than I.
My own reaction would be "fuck em".

But still, should he return the primary satisfaction would be through telling that little man that told him to get the bus to the airport that he's fired.

[Mock Cockpit]

Those crusty old bastards wanted Woodford to be their patsy. Problem is when you hatch a scheme to cover up another scheme it all spirals out of control pretty quick. Hopefully for all the rank and file at Olympus someone is still flying the airplane. But I'm with the hammer, it's pretty interesting to watch.

[Greji]

If you read that Telegraph interview, he says he wants to return.

When this story first broke, I did wonder whether we were in danger of overestimating Woodford's ability to run a major Japanese company, regardless of how justified his allegations were. He has now been proved right but it doesn't indicate whether he has the full range of skills necessary. He may well have them but he's still unproven.

Now, however, I don't think that matters. What seems more important is what Woodford represents. He's a company man who others can rally around and the company needs a figurehead like that. It's a bit embarrassing to have an Olympus meishi right now and the rank and file need to feel proud of what they do.

If you reach outside the company, there aren't many executives with a stronger claim than Woodford so he should probably be given the job, working with a board he can trust.

Good points Mulby, but there is also the reason that by bringing Woodford back, they have a double backstop. If he sucessfully turns the company around, they're back on the feet and have won. If the company continues to sink into oblivion, he has to be part of the blame and can be "rightously" dismissed in the next change around, thus in part, defending the old guard.

As a longtime Olympus employee, he may want to come back, but he may well not choose to do so, because it is going to take a lot of time and, probably, luck to make any rapid major turnarounds.

[Mulboyne]

Good points Mulby, but there is also the reason that by bringing Woodford back, they have a double backstop. If he sucessfully turns the company around, they're back on the feet and have won. If the company continues to sink into oblivion, he has to be part of the blame and can be "rightously" dismissed in the next change around, thus in part, defending the old guard.

That's a good observation. Even if the current old guard don't feature in the future of the company, there'll still be a rump of executives with their own ambitions. The good news for Woodford is that the bar will initially be set low since keeping the firm intact and restoring stability. I'm sure that's no simple matter but it does help concentrate the mind.

It's certainly no a done deal that Woodford will be invited back but his chances have improved.

[matsuki]

If he does decide to return then he's certainly a bigger man than I.
My own reaction would be "fuck em".

But still, should he return the primary satisfaction would be through telling that little man that told him to get the bus to the airport that he's fired.

What bigger "fuck you" to those who ousted him can there be than returning to the same office as "Da Man" and cleaning house? I'm sure he can take the extra step to ensure his Japanese cultural sensitivity and demonstrate it by forcing all them old bastards to publicly give up and bonuses/severance packages/etc. for the good of the firm

[hanasims]

What bigger "fuck you" to those who ousted him can there be than returning to the same office as "Da Man" and cleaning house? I'm sure he can take the extra step to ensure his Japanese cultural sensitivity and demonstrate it by forcing all them old bastards to publicly give up and bonuses/severance packages/etc. for the good of the firm

Awesome.

I bet right now though that a lot of Japanese companies will think twice before brining in a "wa" (crime) busting gaijin to run things though.

[Catoneinutica]

Most of Olympus' board members - and certainly Kikukawa - no doubt think of Woodford as nothing better than a scummy sokaiya, soiling the Olympus name and singling the company out for scrutiny when in fact the tobashi tomfoolery in which it was engaged is ubiquitous in Japan.

All the squid ink being pumped out about how Olympus is damaging Japan, Inc, in the eyes of foreign investors is pretty obvious tatemae; corporate Japan has never been keen on foreign investment, and Japan has by far the lowest rate of FDI of any major economy. In fact, as we know from cases as temporally remote as those of Koito and Bulldog Sauce, it positively loathes active foreign investment.

[matsuki]

[quote="Catoneinutica"]Most of Olympus' board members - and certainly Kikukawa - no doubt think of Woodford as nothing better than a scummy sokaiya, soiling the Olympus name and singling the company out for scrutiny when in fact the tobashi tomfoolery in which it was engaged is ubiquitous in Japan.

All the squid ink being pumped out about how Olympus is damaging Japan, Inc, in the eyes of foreign investors is pretty obvious tatemae]

My thoughts exactly!

I'm not familiar with the Koito and Bulldog cases though, care to elaborate?

[Screwed-down Hairdo]

In fact, as we know from cases as temporally remote as those of Koito and Bulldog Sauce, it positively loathes active foreign investment.

Being a foreigner and having invested considerably in Koitus in this cuntry, I will personally attest to being positively loathed...

[Mulboyne]

I'm not familiar with the Koito and Bulldog cases though, care to elaborate?

The Koito case was fascinating but not the best example to use. A group of Japanese businessmen lent their stock in Koito to T. Boone Pickens and asked the American to try to get a seat on the board. Koito refused and it turned into a textbook case of Japanese companies closing ranks against foreigners. Pickens still happily describes his role today on his site.

What Pickens fails to mention is that the "businessmen" were yakuza who were trying to greenmail Koito. The stock was in the name of Azabu Motors which was led by Kitaro Watanabe. When the bubble burst, all Azabu's real estate holdings were collateral but the creditors couldn't get near them because of the mob links. Watanabe himself went to jail for two years for hiding money from creditors. One of the reasons Pickens was refused a seat on the board is that he couldn't prove he owned the stock outright. Watanabe put it in his name but didn't actually sell it to him, so Koito had a valid reason to turn him down.

There was an earlier attempt to greenmail a Japanese company by a legitimate group of foreigners which has slipped out of the history books. Minebea issued an avalanche of warrants as a way to gain some cheap financing. Warrants offer the right to buy stock and a fast-and-loose English trader called Terry Ramsden bought them up and owned an implied stake in the company of 37% so he made a takeover bid.

Minebea responded by diluting his holding and taking him out of the game. That's the same kind of action Bulldog Sauce and Sapporo Beer were to take 20 years later against Steel Partners. Mind you, Steel Partners didn't lose all its battles. They changed the board at wig maker Aderans which meant the company dropped its poison pill defence. It was a pyrrhic victory, Steel Partners closed its Japan Fund a few months ago and sold up.

[Catoneinutica]

Here's a good overview, though it doesn't mention Watanabe's involvement in the Koito dustup:

http://docs.google.com/viewer?a=v&q=cache:uXtBhvwVnE4J:www.usc.edu/schools/business/FBE/seminars/papers/F_5-6-10_HAMAO-HKM.pdf+t+boone+pickens+koito&hl=en&pid=bl&srcid=ADGEESj4mGvki8Hg5zJwDwoIcQLIdoXmRqYPLZ2bnQXyLS9F0UT7M6fL1xAoF7hobIigLWI9W_rfF8IYU41TvrE6pVM9Rjl4OebKcUJpsSjqmmbY4VoXhVwK68rDrI84Spz-XK4rs2r4&sig=AHIEtbQHwP-uPry9wQzwcCAVNKjAT6ZgHA

[matsuki]

Lots of good info

Awesome info...does Korea pull this stuff as well? I think China requires citizenship...