Oasis calls for governance reform and value recovery at Nidec

Nidec Corporation (NJDCY) has outlined a comprehensive governance reform and value recovery plan following an accounting scandal that triggered a Tokyo Stock Exchange delisting alert and a junk credit rating according to Bloomberg. On January 28, 2026, the company submitted an improvement plan to the exchange, aiming to address suspected improper accounting practices and strengthen corporate governance. A third-party committee, established to investigate the scandal's root causes, is expected to deliver its interim findings by the end of February 2026. The committee's final report, to be incorporated into Nidec's revised reform measures, will focus on clarifying management accountability and preventing recurrence.

The reform plan, led by the Nidec Corporate Reform Committee, includes six pillars: optimizing planning processes, enhancing accounting independence, fostering a transparent corporate culture, strengthening governance, improving internal controls, and clarifying responsibilities. Key initiatives include establishing a Culture Transformation Lab to amplify employee voices and revising executive assessment systems to prioritize long-term sustainability. Nidec also announced disciplinary actions based on the third-party investigation's conclusions.

The company faces pressure to resolve ongoing issues, as delayed financial disclosures and credit downgrades have eroded investor confidence. Nidec's shares, down 30% since late August 2025, remain excluded from the Nikkei 225 index. A final confirmation of its internal control system is scheduled for October 28, 2026. While the reforms aim to restore trust, the third-party committee's findings and subsequent actions will be critical in determining the success of Nidec's recovery efforts.