Toshiba's Chief Executive Satoshi Tsunakawa is stepping down, as the embattled Japanese technology giant seeks to restructure and restore its reputation.
Tsunakawa will be replaced by Taro Shimada, an executive officer and corporate senior vice president, under a decision made at a Toshiba board meeting Tuesday, the Tokyo-based company said.
Shimada was an executive at Siemens, both in Japan and the U.S., before joining Toshiba Corp. in 2018, working in its digital operations.
He faces the challenge of leading a restructuring plan that's drawn criticism from shareholders. In February, Toshiba said it plans to split into two companies, one focused on infrastructure and the other on devices.
The proposal is still subject to shareholder and regulatory approval. An extraordinary shareholders' meeting is set for March 24, when the reform plan will be put to a vote.
Toshiba scrapped its earlier proposal for a three-way split, which was not popular with shareholders, including foreign funds.
Approval for Tuesday's personnel changes, including a resignation of another board member, and the nomination of two others, will be sought in a shareholders' meeting in June, Toshiba said.
Toshiba was one of Japan's most revered brands but has been struggling since the Fukushima nuclear disaster in March 2011. A tsunami sent three reactors into meltdowns, spewing radiation over an area that's still partly a no-go zone. Toshiba is involved in the decommissioning effort, which will take decades.
The company's reputation was also tarnished by an accounting scandal, which involved books being doctored for years.
In 2021, Nobuaki Kurumatani resigned as Toshiba president and Tsunakwa took the helm. Kurumatani had headed global fund CVC Capital Partners' Japan operations and became CEO in 2018.
Founded in 1875, Toshiba was a manufacturing pioneer for everything from electric rice cookers to laptop computers. It also invented flash memory, although that division was sold off as its fortunes tumbled.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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