Toshiba Outside Director Kobayashi to Step Down

June 19, 2020

Tokyo- Yoshimitsu Kobayashi, former chairman of the Japan Association of Corporate Executives, or Keizai Doyukai, will step down as an outside director of Toshiba Corp., it was learned Friday.

Kobayashi, 73, who is also chairman of Mitsubishi Chemical Holdings Corp., will be succeeded by Osamu Nagayama, 73, honorary chairman of Chugai Pharmaceutical Co..

The change will take place after Toshiba's annual shareholders' meeting, which is scheduled for July.

In September 2015, Kobayashi took up the position of an outside director for the Japanese electronics and machinery maker, following an accounting scandal at the company.

As the head of a nominating committee that can suggest the appointment and dismissal of Toshiba's president, Kobayashi has worked on reforming the company's corporate climate. He also serves as chairman of Toshiba's board.

Toshiba President Nobuaki Kurumatani has indicated that the company has largely solved the issues of negative legacies, including by withdrawing from overseas nuclear operations and selling its U.S. liquefied natural gas business.

Kobayashi's resignation will signal an end to a phase in its corporate rehabilitation process.

In charge of Chugai's businesses for a long time until March this year, Nagayama is known for his bold management decisions, including bringing the company under the wing of Swiss pharmaceutical giant Roche in 2002.

In June 2019, Toshiba switched over to a management setup in which 10 of 12 board members are from outside the company.

All members of Toshiba's nominating, compensation and auditing committees are outside directors as well.

Through such changes, the firm has been working on revamping its corporate governance. Jiji Press