Toshiba CEO Quits Amid Stockholder Revolt

Toshiba Corp. President and CEO Satoshi Tsunakawa stepped down Tuesday, after shareholders called for a shake-up in management amid instability and confusion caused by changes to the company's controversial split-up plan, Mainichi Japan reported.

Photo Insert: Tsunakawa, 66, resigned following a board of directors' meeting earlier in the day.

Tsunakawa, 66, resigned following a board of directors' meeting earlier in the day. Taro Shimada, a 55-year-old executive officer, and corporate senior vice president, succeeded him, the Japanese industrial conglomerate said.

Toshiba, a Japanese household name with a nearly 150-year history, said in February it plans to split into two listed companies instead of three after its initial rehabilitation plan drew fierce opposition from activist shareholders who desired an increased share price.

The announcement came just weeks before Toshiba holds an extraordinary shareholders' meeting on March 24 to vote on its recently decided plan. The firm is seeking majority support at the meeting.

Shimada, who joined Toshiba in 2018, told an online press conference that the company should go ahead with its split-up plan, saying "I would like to enhance trust with stakeholders as quickly as possible."

Raymond Zage, who chairs a committee that nominates candidates for Toshiba directorship and joined the press conference remotely, said the committee found it necessary to change the company's leadership after several shareholders expressed dissatisfaction with the restructuring plan.

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