Japanese CEO Toshiba resigns in restructuring efforts

Tokyo — Japanese technology giant Toshiba has appointed a new chief executive officer as it seeks shareholder approval for a restructuring plan aimed at regaining reputation and competitiveness.

The company said on Tuesday that the board of directors has decided to replace Satoshi Tsunakawa as CEO and CEO Taro Shimada.

Prior to joining Tokyo-based Toshiba in 2018, Shimada was a Siemens executive in both Japan and the United States, working in the digital business.

He faces the challenge of leading a restructuring program that has been criticized by shareholders. In February, Toshiba announced plans to split into two companies focused on infrastructure and devices.

Shimada said he is proud to be the first CEO with a background in digital technology and hopes it will benefit Toshiba’s energy business.

“I’ve only been to Toshiba for three years, but I love Toshiba,” he said.

When asked how he wanted to acquire critical shareholders, Shimada referred to the phrase “standing in the position of others” and learned about the importance of equal communication while working in the United States. Said.

Restructuring proposals still require shareholder and regulatory approval. The extraordinary shareholders’ meeting is set for March 24, when the plan is voted on. Toshiba officials told reporters that it was time for the management change to take place before that, but it was unclear how it would help to acquire shareholders.

Toshiba has abandoned its previous proposal for a tripartite split that is unpopular with shareholders, including foreign funds.

Toshiba said at a shareholders’ meeting in June that it would be required to approve the personnel changes on Tuesday, including the resignation of another director and the nomination of two others.

Toshiba was one of the most respected brands in Japan, but has been struggling since the Fukushima nuclear accident in March 2011. Toshiba is involved in decommissioning work that takes decades.

The company’s reputation has also been hurt by accounting scandals, including the fact that books have been doctors for years.

Last year, when Nobuaki Kurumatani resigned as president of Toshiba, Tsunakawa took command. In addition, he oversaw the Japanese business of CVC Capital Partners, a global fund, and was appointed CEO of Toshiba in 2018.

However, Mr. Tsunakawa said he had fulfilled his mission to pass on leadership to the next generation and hoped that Toshiba’s shareholders, customers and employees would agree to the proposed restructuring plan. He did not state how the company responded to the complaint.

“I am confident that we have taken over the leadership of Toshiba for its future evolution,” he told reporters at an online press conference.

He emphasized the need to change the company from the inside out and upheld the decision to appoint Toshiba people to the top position rather than outsiders. He said this could be Toshiba’s “last chance” to establish its reputation and brand power as a technology company and regain its credibility.

Founded in 1875, Toshiba was a pioneer in the manufacture of everything from electric rice cookers to laptop computers. He also invented flash memory, but the division was sold out due to fate.

Yuri Kageyama

Associated Press