Toshiba nom­i­nates new CEO

Pakistan Observer - - ECONOMY WATCH -

—Henry Rollins TOKYO—Ja­pan’s Toshiba Corp. said it had nom­i­nated Satoshi Tsunakawa, a for­mer head of its med­i­cal equip­ment di­vi­sion, to be its next chief ex­ec­u­tive of­fi­cer— a move that it hopes will draw a line un­der a dam­ag­ing ac­count­ing scan­dal. Sixty-year-old Tsunakawa, who was not em­broiled in the scan­dal, is cred­ited with hav­ing grown the med­i­cal equip­ment unit into a ma­jor profit driver. He is cur­rently a se­nior ex­ec­u­tive vice pres­i­dent.

“My big­gest task would be to re­build trust from stake­hold­ers and trans­form the com­pany un­der our new ac­tion plans,” Tsunakawa told a press con­fer­ence. “I would place the most im­me­di­ate pri­or­ity on beef­ing up the cap­i­tal base.”

A $1.3 bil­lion book-keep­ing scan­dal last year has pushed Toshiba to stream- line its busi­nesses, an­nounce plans for 14,000 job cuts and the sale of the med­i­cal unit to Canon Inc. for $5.9 bil­lion. Last month, it also took a $2.3 bil­lion write­down on US nu­clear unit West­ing­house in a much-an­tic­i­pated move to ad­dress lin­ger­ing doubts over its ac­count­ing prac­tices. Tsunakawa’s ap­point­ment is ex­pected to be con­firmed at a share­hold­ers’ meet­ing in late June.

Cur­rent CEO Masashi Muro­machi took the helm last July when his pre­de­ces­sor and a slew of other se­nior ex­ec­u­tives re­signed for their roles in the scan- dal, but had not planned on do­ing the job long term. He will be­come a spe­cial ad­viser. Also on Fri­day, Se­nior Ex­ec­u­tive Vice Pres­i­dent Shigenori Shiga was nom­i­nated to be­come chair­man. Shiga was chair­man of West­ing­house when the unit 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 bourse’s dis­clo­sure rules. When asked about Shiga’s re­spon­si­bil­ity, the chief of Toshiba’s nom­i­na­tion com­mit­tee, an out­side board di­rec­tor, said his ex­pe­ri­ence at the nu­clear power busi­ness would be in­dis­pens­able as the chair­man’s roles in­clude ne­go­ti­a­tions with the gov­ern­ment and util­ity firms.—Agen­cies

Toshiba Corp. in­com­ing Pres­i­dent and CEO Satoshi Tsunakawa with in­com­ing Chair­man Shigenori Shiga in Tokyo.

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