1 Mar 2022
Toshiba CEO Steps Down amid Opposition to Restructuring
The Index Today
Toshiba Corp on Monday announced that Satoshi Tsunakawa will be stepping down from his role as the company’s Chief Executive Officer. This comes as a surprise move following reports of internal opposition to the conglomerate’s plans of restructuring.
According to Reuters, after its decision to split the company into three separate divisions was met with much criticism from foreign hedge fund shareholders, Toshiba changed its plans last month to divide itself into two companies instead. However, even that instigated internal opposition.
Justin Tang, Head of Research at United First Partners, said, "The split plan will be reviewed - we think there is a chance it is scrapped.”
In the meantime, Toshiba has appointed Taro Shimada, a senior executive, as its new interim CEO.
The opposition to restructuring plans came as Toshiba’s shares soared significantly by 3% spurred by the proposed splitting of the conglomerate.