Honda Motor Co. announced on Monday that Executive Vice President Shinji Aoyama has resigned following an allegation of inappropriate behavior during a private social event held outside of working hours, Reuters reported.
Although the company did not disclose the nature of the misconduct, it acknowledged the seriousness of the matter. As a result, CEO Toshihiro Mibe will take a 20% pay cut for the next two months, according to a statement reviewed by Reuters.
The decision follows an internal investigation conducted by Honda's audit committee, which evaluated the situation, prepared a plan for disciplinary action, and consulted external experts. However, before the board could act on the recommendation, Aoyama tendered his resignation. The board concluded that his resignation was an appropriate course of action.
In its official statement, as Reuters reports, Honda expressed regret over the situation, noting that someone in a leadership role—expected to uphold standards of human rights and regulatory compliance—had become the subject of such an allegation.
Aoyama joined Honda in 1986 and has held key executive roles, including Chief Operating Officer and head of automobile operations. He was also regarded as one of CEO Mibe’s closest aides.
The Japanese automaker, which ranks as the country's second-largest behind Toyota, added that it would announce updates to its executive management structure in the near future.