Toshiba appoints new boss after accounting scandal

May 6th, 2016 by Mark Daly in Industry News No Comments »

Technology giant Toshiba has nominated the former head of its medical equipment division Satoshi Tsunakawa, as its new chief executive.

Last year an accounting scandal led to the resignation of Toshiba’s chief executive Hisao Tanaka.

Back then Toshiba admitted to overstating its profits by 151.8bn yen ($1.22bn, £780m) over six years.

Mr Tsunakawa was not involved in the scandal and is credited with increasing earnings at the healthcare unit.

The company also named a new chairman, Shigenori Shiga who is currently serving as senior executive vice president.

The appointments need the approval of shareholders at a meeting in late June.

Toshiba appoints new boss after accounting scandal ilicomm Technology Solutions
Image copyright Getty Images

Last year, Toshiba was found to have overstated its operating profit by a total of 151.8bn yen (£780m) over the course of six years.

The revelation led to a record £40m fine for the company from regulators.

When the scandal hit, chairman Masashi Muromachi temporarily took over as chief executive.

Mr Muromachi will now become a special adviser.

Toshiba has also reported it expects to make a £4.1bn annual loss for 2015. The company also said it will cut 14,000 jobs as part of a restructuring programme.

Part of that programme saw the recent sale of Toshiba’s healthcare unit to Canon for £4bn.

Last month, Toshiba also took a ($2.3bn) £1.6bn writedown on its US nuclear unit Westinghouse in a move to address any lingering doubts over its accounting practices.

Toshiba, which was founded in 1875 and launched the world’s first mass-market laptop in 1985, currently employs almost 200,000 people.

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