Nidec Announces Founder Shigenobu Nagamori's Resignation Amidst Accounting Probe, Appointed Non-Executive Honorary Chairman

Nidec (formerly Nihon Dempa) announced on the 19th that its founder, Shigenobu Nagamori (81), resigned from his positions as Representative Director, Global Group Representative, and Director, effective the same day, and has been appointed Non-Executive Honorary Chairman. This resignation comes amidst an ongoing investigation by a third-party committee into alleged improper accounting practices within the company.

Nagamori founded Nihon Dempa (now Nidec) in 1973 and was instrumental in growing it into a global enterprise primarily focused on small motors. His powerful leadership was sometimes described as "autocratic," and there were views that even at over 80 years old, he continued to hold practical authority. The company states that Nagamori's resignation was at his own volition and that Nidec will now focus on improving its internal control system. Mitsuya Kishida, Representative Director and President and COO, will assume the duties of Chairman of the Board.

However, various reactions to this resignation are being seen on social media. While some voices say, "He finally quit," others point out that he "resigned as if fleeing without waiting for the third-party committee's investigation report on the alleged accounting fraud." Concerns are also heard that by becoming a non-executive honorary chairman, he "has not fully stepped down and might continue to exert 'shadow rule' (insei)" in the future. There are also comments expressing regret that "it feels like his later years have been tainted." Public attention is focused on this top executive's departure amidst the improper accounting issue. While acknowledging Nagamori's long-standing achievements, questions are being raised about his accountability for the current accounting problems and the future of corporate governance under the new system.

The context

Nidec (formerly Nihon Dempa): A prominent Japanese manufacturer of electric motors, particularly known for its small precision motors used in hard drives, optical drives, and various electronic devices. It has grown into a global leader under Nagamori's leadership, often through aggressive mergers and acquisitions.

Shigenobu Nagamori: The charismatic and often controversial founder of Nidec. He is known for his intense work ethic, demanding management style, and a track record of transforming struggling companies. His leadership has been a defining characteristic of Nidec's corporate culture.

Improper Accounting Investigation: The article highlights an ongoing investigation by an independent third-party committee into alleged improper accounting practices within Nidec. This inquiry serves as a significant backdrop to Nagamori's resignation.

"Insei" (院政): A Japanese term originally referring to a retired emperor continuing to exert power behind the scenes, effectively ruling from retirement. In a corporate context, it implies a former leader still influencing company decisions and strategy despite no longer holding an official executive position. The concern is that Nagamori, even as a non-executive honorary chairman, might continue to wield significant influence.