Honda EVP Aoyama resigns after 'allegation of inappropriate conduct'

TOKYO (Reuters) -Honda Motor said on Monday that it had accepted the resignation of Executive Vice President Shinji Aoyama which followed an allegation of inappropriate conduct during a social gathering outside of work hours.

Honda did not elaborate on Aoyama's conduct in question, but said CEO Toshihiro Mibe will take a 20% salary cut for two months "in light of the seriousness" of the matter.

After an audit committee led an investigation into the allegation, compiled a disciplinary action plan and sought opinions from outside experts, Honda's board was scheduled to make a decision on the disciplinary action.

But Aoyama submitted his resignation on Monday, and the board has determined it is appropriate for Aoyama to resign from his post, the company said in a statement.

Reuters could not reach Aoyama for comment.

"It is deeply regrettable that an individual positioned as a leader in the management of the company, and who is expected to set an example for the respect of human rights and compliance with relevant laws and regulations, has become the subject of an allegation of conduct contrary to these principles," Honda said in a statement.

Aoyama joined Honda in 1986 and has held several senior positions in recent years as one of CEO Mibe's top lieutenants, including as Chief Operating Officer and head of the automobile operations.

Honda, Japan's second-largest automaker after Toyota Motor, said it will announce the new management structure in response to this matter in the near future.

(Reporting by Kantaro Komiya, Daniel Leussink, Kiyoshi Takenaka;Editing by Chang-Ran Kim and Louise Heavens)