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Former COO investigated over alleged conflicts of interest, ‘questionable’ behaviour.
The U.S. Securities and Exchange Commission (SEC) is investigating allegations of misconduct by Nikesh Arora, who resigned as COO of Softbank last month.
Unnamed sources cited by Bloomberg last week said the regulator is looking into alleged questionable behaviour, including whether Arora had conflicts of interest during his time at the Japan-based telco.
The report comes after it emerged that a group of Softbank investors had earlier this year called on the company’s board to investigate his qualifications, compensation, and his role as an advisor at a private equity firm.
The investors also accused Arora of engaging in "questionable transactions", and criticised his investment performance.
According last week’s Bloomberg report, a committee of independent directors investigated, and concluded that the allegations lacked merit.
The official reason given for Arora’s resignation was that his hopes of succeeding Masayoshi Son as Softbank CEO were dashed.
Arora joined Softbank from Google in July 2014. He was appointed as vice chairman and CEO of Softbank Internet and Media.
During his tenure, he spearheaded investments in various small, fast-growing companies in Asia and the U.S.
In March this year, Softbank effectively split into two organisations, one managing its domestic operation, the other managing its international businesses. Arora, by now group COO, was put in charge of the latter.
Arora was being groomed as the company’s next leader, and was expected to step up after Son’s 60th birthday, in August 2017.
However, Son changed his mind, and opted instead to stay in his job for the next five-to-10 years, prompting Arora to quit.
"This is not a time frame for me to keep Nikesh waiting for the top job," Son said at the time.
