Tsunakawa, 60, is credited with having grown profits for the medical business. He was not involved in the accounting scandal; ex-CEO Hisao Tanaka and 7 other senior Toshiba executives resigned in July 2015 after admitting that they cooked the books to show inflated profits. Toshiba later confirmed that it overstated profits going back to fiscal 2008/09 by some $1.45 billion (¥155 billion).
The company put Masashi Muromachi in the corner office on a temporary basis to restore stability after the scandal, which has halved the value of Toshiba’s shares since a July 21 close of about $3.96 (¥423.40). Muromachi will stay on as a special advisor, Toshiba said.
“My biggest task would be to rebuild trust from stakeholders and transform the company under our new action plans,” Tsunakawa said at a press conference today. “I would place the most immediate priority on beefing up the capital base.”
Shareholders are expected to approve Tsunakawa’s appointment at a meeting late next month.
The scandal pushed Toshiba to scale back its businesses, including plans for 14,000 job cuts and the controversial sale of its medical unit to Canon (NYSE:CAJ) for $5.9 billion.
Toshiba also said it named as chairman Shigenori Shiga, who was chairman of Westinghouse when it booked charges of $930 million in fiscal 2012 and $390 million in fiscal 2013, which Toshiba failed to flag at the time in violation of the Tokyo exchange’s disclosure rules.
Asked about Shiga’s responsibility, the chief of Toshiba’s nomination committee, an outside board director, said Shiga’s experience at the nuclear power business would be indispensable as the chairman’s roles include negotiations with the government and utility firms.
Toshiba shares closed down -3.4% at about $2.01 (¥214.70) today in Tokyo.
($1 = ¥106.88)
Material from Reuters was used in this report.
The post Toshiba promotes medical chief Tsunakawa to CEO appeared first on MassDevice.
from MassDevice http://ift.tt/1XcggvV
Cap comentari:
Publica un comentari a l'entrada