Tsuyoshi Kikukawa resigned on Wednesday in the wake of the disclosure that advisory fees reduced the value of the 92 year old company’s market value by half.
The issue revolves around a $687 advisory fee paid in association with a 2008 Olympus takeover valued at $2.2 billion. Other deals made at the time are also going to be looked into by Japan’s security oversite agency.
“For now the stock should rebound on his leaving, but in reality nothing has been cleared up,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.