Tokyo: Toshiba Corp Chief Executive Officer said on Tuesday Satoshi Tsunakawa is resigning – the sudden departure that comes after sources said internal opposition to the industrial conglomerate’s controversial restructuring plans grew.
Toshiba’s initial plan to split the group into three was heavily criticized by foreign hedge fund shareholders. But a revised plan this month that included the breakup in the two companies and the sale of other businesses also faced opposition from within the company, according to two sources familiar with the matter.
The sources were not authorized to speak to the media and declined to be identified.
Asked about internal opposition, toshiba said it strongly believes that its announced restructuring plan is the best option for the company, but declined to comment further.
Senior executive Taro Shimada, a former Siemens AG executive, will become the company’s new interim chief effective Tuesday, Toshiba said in a statement.
Mamoru Hatazawa, senior executive vice president of corporate and board member, will also resign, while Goro Yanase, the head of Toshiba’s elevator business, will be appointed interim chief operating officer.
The Board will monitor the performance and business performance status and “where appropriate, the Board will continue its deliberations towards appointment of external candidates,” it added.
While Tsunakawa had stepped into the CEO role on an interim basis and said he did not expect to be in the position on a long-term basis, the timing of the announcement was a surprise.
A Toshiba spokesperson said the company has now decided on the new appointments because it wants shareholders to be clear about who will lead the company ahead of the March 24 extraordinary general meeting, which will follow the revised breakup plan. will seek initial shareholder approval for
Shareholders will also vote on a proposal from a major shareholder that Toshiba explore other options and solicit purchase offers from private equity firms.
Toshiba’s initial plan to split the group into three was heavily criticized by foreign hedge fund shareholders. But a revised plan this month that included the breakup in the two companies and the sale of other businesses also faced opposition from within the company, according to two sources familiar with the matter.
The sources were not authorized to speak to the media and declined to be identified.
Asked about internal opposition, toshiba said it strongly believes that its announced restructuring plan is the best option for the company, but declined to comment further.
Senior executive Taro Shimada, a former Siemens AG executive, will become the company’s new interim chief effective Tuesday, Toshiba said in a statement.
Mamoru Hatazawa, senior executive vice president of corporate and board member, will also resign, while Goro Yanase, the head of Toshiba’s elevator business, will be appointed interim chief operating officer.
The Board will monitor the performance and business performance status and “where appropriate, the Board will continue its deliberations towards appointment of external candidates,” it added.
While Tsunakawa had stepped into the CEO role on an interim basis and said he did not expect to be in the position on a long-term basis, the timing of the announcement was a surprise.
A Toshiba spokesperson said the company has now decided on the new appointments because it wants shareholders to be clear about who will lead the company ahead of the March 24 extraordinary general meeting, which will follow the revised breakup plan. will seek initial shareholder approval for
Shareholders will also vote on a proposal from a major shareholder that Toshiba explore other options and solicit purchase offers from private equity firms.