Toshiba elects interim chair, issues statement

In the midst of considerable change, Toshiba Corporation used the occasion of its recent AGM to elect CEO Satoshi Tsunakawa as Interim Chair of the Board.

”Toshiba is in the middle of a period of considerable change, focused around an improvement in corporate governance, greater emphasis on capital management, increase in shareholder returns, and the rebuilding of trust and support from our shareholders,” the corporation says. “The Board of Directors has undergone considerable change as a result of the independent investigation report published on June 10 and the voting at the annual general meeting.”

The board unanimously elected Tsunakawa as interim chair of the Board, saying he brings to the role a deep understanding of Toshiba’s strategic capabilities and competitive advantages, as well as an objective view of its challenges and opportunities.

The board has resolved on a new composition of all board committees, focused on the skills and capabilities of the current members of the board. Board directors plan to engage with Toshiba’s major stakeholders – shareholders, management, employees and customers – to consider any additional changes that may be needed to improve stability, governance and future profitability.

Toshiba plans to:

• Increase its level of engagement and transparency with staff and customers
• Identify a successor to Interim Chairman and CEO, Satoshi Tsunakawa
• Expand the scope of Toshiba’s newly formed Strategic Review Committee (“SRC”) to review assets and devise a new business plan
• Engage with potential strategic and financial investors
• Undertake a review of the corporate culture of Toshiba and look for ways to improve morale.

“It is critical that we avoid a repeat of any of the past scandals and financial problems Toshiba has suffered,” the company says. “We are looking forward to a brighter future for Toshiba, one of Japan’s most important companies.”