Shinji Aoyama, one of Honda's top executives, has resigned following an internal investigation into allegations of misconduct.
The specific incident involving Aoyama was described as inappropriate conduct during a social gathering outside of work hours.
Aoyama, a Honda veteran, served in critical roles in the company and was involved in leading Honda's electrification push.
In response to the incident, Honda expressed deep remorse, CEO Toshihiro Mibe will take a voluntary 20% pay cut for two months, and the automaker plans to strengthen its internal compliance system.