There’s a way of doing business in Japan and, if you make it to the rank of chief executive as a foreigner, you follow it – unless, like Carlos Ghosn at Nissan or Michael Woodford at Olympus, you were brought in because you don’t. Either way, it’s not easy. It’s also risky. You’re legally responsible for the business, you have to trust what your colleagues tell you, and you sign things you literally can’t read.
The Olympus story has renewed calls for better corporate governance in Japan. Better means western to those making the calls – but western doesn’t mean better to many Japanese. I found myself in a similar situation to that of Mr Woodford a few years ago. We had bought a controlling stake in a struggling Japanese company. Once in as CEO, I found a bridge loan we made had been diverted and misspent and brought this to the attention of our local partners. Overnight, I went from being a saviour to being vilified as a bad guy who didn’t like Japan. But I had my friends’ and family’s funds invested, so I couldn’t walk away. I ended up having a closer and longer view than most at how a corporate brawl like this unfolds. It wasn’t pleasant or encouraging.
Calls to improve shareholder rights have been heard without much result since Boone Pickens bought