Toshiba nominates new CEO in bid to put accounting scandal behind it

Published: May 6, 2016 2:09:17 PM

Japan's Toshiba Corp said it had nominated Satoshi Tsunakawa, a former head of its medical equipment division, to be its next chief executive officer - a move that it hopes will draw a line under a damaging accounting scandal.

toshiba accounting scandal, toshiba new ceo, toshiba news, satoshi tusunkawaA .3 billion book-keeping scandal last year has pushed Toshiba to streamline its businesses, announce plans for 14,000 jobs cuts and the sale of the medical unit to Canon Inc for .9 billion. (Reuters)

Japan’s Toshiba Corp said it had nominated Satoshi Tsunakawa, a former head of its medical equipment division, to be its next chief executive officer – a move that it hopes will draw a line under a damaging accounting scandal.

Sixty-year-old Tsunakawa, who was not embroiled in the scandal, is credited with having increased earnings at the medical equipment unit. He is currently a senior executive vice president.

A $1.3 billion book-keeping scandal last year has pushed Toshiba to streamline its businesses, announce plans for 14,000 jobs cuts and the sale of the medical unit to Canon Inc for $5.9 billion.

Last month, it also took a $2.3 billion writedown on U.S. nuclear unit Westinghouse in a much-anticipated move to address lingering doubts over its accounting practices. Tsunakawa’s appointment will be formally decided after a shareholders’ meeting in late June.

Current CEO Masashi Muromachi took the helm last July when his predecessor and a slew of other senior executives resigned for their roles in the scandal, but had not planned on doing the job long term. He will become a special adviser. Senior Executive Vice President Shigenori Shiga was nominated to become chairman.

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