Fuji Television Facing New Reform Demands After Nakai Sex Scandal

The fallout from the Masahiro Nakai sex scandal at Fuji TV and Fuji Media Holdings (FMH) is escalating, with increasing pressure for leadership accountability and corporate governance reforms.

As a symbol of the continuing crisis, on February 5, Fuji Television Vice Chairman Ryunosuke Endo announced his intent to resign as head of the Japan Commercial Broadcasters Association (JBA). His decision is part of the fallout of the Masahiro Nakai sex scandal. Speaking to NHK, Endo said: "I do not think it is appropriate for me to continue as chairman of the JBA. I want to step down as chairman once a successor has been selected."

Masahiro Nakai is accused of sexually assaulting a Fuji TV employee. The network has been denounced for its failure to report the incident properly. Following a highly criticized press conference behind closed doors on January 17, Fuji TV held a fully open 10-hour press conference on January 27. Despite that effort, the scandal's fallout continues.

US Investment Fund Demands Governance Changes

Rising Sun Management, a major shareholder Dalton Investments affiliate, called for several corporate governance reforms in a letter. Dalton Investments owns 7% of FMH shares. Their argument laid out Fuji TV's ongoing internal problems.

The letter argues that measures announced in the January 27 press conference are insufficient to restore trust in the company. On that day, Fuji TV announced the resignations of FMH Chairman Shuji Kanoh and Fuji TV President Koichi Minato.

Rising Sun maintains that "these departures, however well-intentioned will not bring back the sponsors." The company didn't respond to a request for comment.

*Hisashi Hieda at the New Year's Party (courtesy of Fuji TV).*

Seeking Hieda's Resignation

Critics, including Rising Sun, have asked for further changes in how Fuji TV is run. First among the demands is the resignation of Hisashi Hieda, FMH's 87-year-old executive managing advisor.

Hieda is not alleged to have firsthand knowledge of the scandal. However, he is widely believed to hold significant power in the company. At the press conference on January 27, several questions were raised regarding his absence from the press conference.

Although he is not the chairman or president of FMH, as the senior company veteran and former head of Fuji TV, some commentators argue he should be among those held accountable for the mishandling of the Nakai incident and its fallout.

In its letter, Rising Sun claimed that "Hisashi Hieda retains absolute control and influence over the Board of FMH and Fuji TV." It further called the governance of the media group "completely dysfunctional." The text goes on to say, "Why has a single dictator been allowed to control this vast broadcasting group for nearly 40 years?"

Rising Sun did not offer evidence of the "absolute control and influence" it alleges. However, renowned Japanese corporate governance lawyer, Shin Ushijima, commented to NHK on Hieda's role. He acknowledged that Hieda may be an example of an advisor whose influence exceeds his title.

"Being an executive managing advisor means you are always in a position to appear before the board of directors. I think it can be said that a company with someone who has had top management experience and influence will dominate the atmosphere of the board of directors, and that will be reflected in the company culture," he said.

Corporate Governance in Question

Apart from Hieda's resignation, Rising Sun's letter also called for FMH to reform its governance. Arguing it has a duty to shareholders, the letter stated, "[FMH] must reform the Company's governance structure, and the independent directors must assert their control as stewards of the assets."

Fuji TV's mishandled reporting of the sexual assault accusations while keeping Nakai employed as a host brought the corporate governance issue to the fore. Compliance guidelines were already in place for cases involving unfair discrimination or human rights violations. The allegations are that the company did not carry through on its promise to "respond promptly and in good faith" and "take necessary verification and countermeasures" in the Nakai case.

Fuji TV has already said that it is awaiting the results of a third-party investigation committee before taking major steps.

A New Reform Committee

On February 6 Fuji TV established a "Revitalization and Reform Project Headquarters." Headed by newly appointed President Kenji Shimizu, it's expected to have members who are mainly young and mid-career employees.

The aim is to incorporate the opinions of employees and experts in reforming corporate culture, with training on human rights awareness and compliance, and expansion of a whistle-blowing system.

In an official statement to The Sankei Shimbun, Fuji TV said: "The manager has already begun discussions and will reflect them in the reform plan. The goal is to create a work environment that is easy for everyone to work in and respects the will of the individual."

The Sponsor Saga Continues

Since the Nakai allegations surfaced in January 2025, sponsors have rapidly cut ties with Fuji TV. Following the disastrous January 17 press conference, over 70 advertisers withdrew their placements.

The financial fallout has been severe. According to local reports, FMH now projects a staggering 74% drop in net profit for the fiscal year — from ¥29 billion ($189 million) to ¥9.8 billion ($64 million). This marks a sharp decline from the previous year's ¥37 billion ($242 million).

Not all sponsors are backing out of agreements, however. Kinliser, a water supply company, has announced on its X profile that it will resume commercials on Fuji TV channels.

In an X post, the company highlighted that "We have decided that instead of bashing or dismissing people based mainly on speculation, we should listen to what they have to say, respect the attitude of those who are sincerely making efforts to face this issue, and look to the future."

Author: Arielle Busetto