Nidec, a Japanese electric motor maker, announced Friday that its founder, Shigenobu Nagamori, had resigned as chief executive and president, a decision made due to suspicions over the company’s accounting.
In October, after PwC Japan issued a caution on Nidec’s securities report for the fiscal year ending March 2025, the Japan Exchange Group classified the company as an action of special attention, requiring improvement of its internal management system. Nagamori left the top line of leadership, closing the case once and for all.
His new title is that of non-effective president emeritus. Executive Mitsuya Kishida succeeds Nagamori as president of the company, the largest in the world in its field.
Following the announcement, Nidec shares soared on proprietary trading platforms Friday evening. As of 7:30 p.m. Japan time, shares were up more than 5% as investors viewed the news as a step in the right direction. In a press release, the company said: “Nagamori will remain committed to continually improving the sustainable value of the Nidec Group, passing on to future generations the spirit he cultivated as the company’s founder. »
Nagamori has served as CEO for about five decades since the Kyoto-based company was founded in 1973. Although Kishida, formerly of Sony, took over as chairman in 2024, Nagamori has played an important role in major management decisions such as mergers and acquisitions.
On September 3, the company announced the discovery of possible irregular accounting practices. It confirmed the existence of documents that could be interpreted as indicating involvement in irregularities on the part of the headquarters administration and group companies, whether through direct participation or prior knowledge.
Regarding this series of incidents, the responsibility and involvement of the administration, including Nagamori, are in focus. An independent committee is leading the investigation.
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