One of Honda’s top executives called it quits following an internal investigation.
In a statement released on April 7, Japanese automaker Honda announced that one of its top executives, Shinji Aoyama resigned from the company following an internal investigation into matters of inappropriate conduct.
Honda did not go into explicit detail about the specific incident that its former Executive Vice President was involved in, but it described in its official statement that Aoyama was facing “an allegation of inappropriate conduct during a social gathering outside of work hours,” and that its internal Audit Committee promptly led an investigation and sought the opinion from outside experts in response.
They also denote that, as a result of their Audit Committee’s investigation, the company’s board of directors was ready to proceed with a decision on its own set of disciplinary actions. However, Aoyama submitted his letter of resignation before such a meeting could take place. Honda’s board of directors, as a result, determined that Mr. Aoyama’s resignation was appropriate.
Honda
Aoyama was a key leader at Honda
Prior to his sudden resignation, Aoyama was a Honda veteran who wore many hats at the company before his senior executive position. The 61-year-old joined Honda in 1986 and served in critical roles in its automobile operations in key areas, including North America, where he served as chief officer of Regional Operations in the continent and President and CEO of American Honda Motor Co., Inc, and was also tasked as leader in charge of Honda’s massive electrification push.
Along with CEO Toshihiro Mibe, Aoyama was also a public-facing company man at public events and earnings announcements. Most recently, Aoyama presented the Honda 0 Series of concept electric vehicles at the Consumer Electronics Show alongside Mibe.
Due to Aoyama’s seniority and importance to critical projects and ventures within the company, Honda expressed deep remorse in its statement for the situation that took place; denoting that what took place was contrary to its principles and that the person at the center was “expected to set an example” among his employees.
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Aoyama’s executive profile was wiped from the company’s website after the announcement was released.
“It is deeply regrettable that an individual positioned as a leader in the management of the Company, and who is expected to set an example for the respect of human rights and compliance with relevant laws and regulations, has become the subject of an allegation of conduct contrary to these principles,” Honda said. “The Company sincerely apologizes for any discomfort caused by such conduct, and for the significant disturbance and concern it has caused to all stakeholders.”
Final thoughts
In a gesture to take responsibility as the leader of the automaker, Honda said that CEO Toshihiro Mibe will voluntarily cut 20% of his monthly compensation for two months. Additionally, the automaker says that it will beef up its internal company-wide compliance system.
Honda also says that it is considering a new management structure in response to this matter, however, it says that it will disclose additional details of who it will entail “in the near future.” Currently, Noriya Kaihara is its sole executive vice president and representative director.