Toshiba Corporation said that CEO Satoshi Tsunakawa had resigned— a sudden departure that comes after sources reported that revised restructuring plans sparked opposition within the firm in addition to long-standing anger from shareholders.
Newly appointed interim CEO Taro Shimada said that the company would continue to follow its current break-up plan as the board had sanctioned it. The former CEO will continue to remain and function as chairman of the board of directors. Addressing the reporters in Tokyo, Shimada pledged to strengthen ties with workers, shareholders, and other stakeholders.
Initial plans announced last year by the scandal-stricken conglomerate to split into three had been much criticized by foreign hedge fund shareholders—many of whom favor a sale to a private equity firm. But a revised plan last month that called for break-up into two firms and the sale of businesses also met with internal opposition, according to sources familiar with the matter.
Toshiba harbored fears that its planned sale of units like its elevator business would leave the company only with low profit-margin businesses.
The original break-up plan was announced in November 2021 following a five-month strategic review following years of governance issues and accounting scandals that undermined investor confidence in the firm and saw Toshiba’s market value drop by more than half, to around $18 billion, from an early 2000’s high.
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