Struggling Toshiba Proposes Outside Directors to Board

The Toshiba Corp logo. is seen at a company building in Kawasaki near Tokyo, February 19, 2022. Struggling Japanese tech giant Toshiba announced some additions to its proposed management on Thursday, May 26, 2022, ahead of a shareholders meeting the next month.

AP Photo/Shuji Kajiyama, File

TOKYO (AP) — Struggling Japanese tech giant Toshiba announced some additions to its proposed management on Thursday, ahead of a shareholder meeting next month.

Toshiba Corp. said he was looking to add outside directors to the board, such as Nabeel Bhanji, an executive at Elliott Opportunity II Corp., which handles acquisitions and investments, and Eijiro Imai, a former chief executive of Farallon Capital Management, an American investment company. solidify.

Akihiro Watanabe, an executive at Houlihan Lockey, an American investment bank, is also proposed to the board of directors.

Toshiba, based in Tokyo, is trying to convince shareholders of a restructuring plan.

Earlier this year, he tapped Taro Shimada, the company’s chief executive and senior vice president, to replace Satoshi Tsunakawa as chief executive.

Shimada was an executive at Siemens, in Japan and the United States, before joining Toshiba in 2018, working in its digital operations.

In February, Toshiba proposed splitting into two companies, one focused on infrastructure and the other on devices. This was rejected in March.

Some shareholders, including foreign investment funds and US proxy advisory firm Institutional Shareholders Services, opposed the plan.

An earlier plan, also scrapped, called for a three-way split. Toshiba management had defended the proposed plan in February as being less costly.

The latest management overhaul proposal, including Shimada’s appointment as chief executive, has yet to be approved by shareholders.

Toshiba has been struggling since the Fukushima nuclear disaster in March 2011. A tsunami sent three reactors melting, spewing radiation over an area that is still partly a no-go zone. Toshiba is involved in the dismantling effort, which will take decades.

The company’s reputation was also tarnished by an accounting scandal, involving books that had been doctored for years.

Last year, Nobuaki Kurumatani abruptly resigned as president of Toshiba. Kurumatani had led the Japanese operations of global fund CVC Capital Partners before joining Toshiba in 2018.

Kurumatani was replaced by Tsunakawa, a Toshiba veteran, who had served as general manager since 2016.

Founded in 1875, Toshiba was a brand respected by Japanese consumers for products like electric rice cookers and laptop computers. He sold his valuable flash memory business as his fortunes plummeted.

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