Sharp names Takahashi as 3rd president in 2 years

Sharp names Takahashi as 3rd president in 2 years
PHOTO: Sharp names Takahashi as 3rd president in 2 years

Sharp Corp. announced Tuesday that it promoted Vice President Kozo Takahashi to replace President Takashi Okuda, who stepped down after just one year as the struggling electronics maker posted a major loss for the second year in a row, sources said.

Okuda, 59, will become chairman, replacing Mikio Katayama, 55. Katayama, who served as president before Okuda, will now retire.

The personnel change coincides with Tuesday's release of the firm's medium-term management plan for three years starting in fiscal 2013.

The plan aims to reform Sharp's management structure, such as by halving the number of board members from the current 12. The plan is expected to be given official board approval after a general shareholders meeting in late June, the sources said.

Takahashi, 58, began his career at Sharp after graduating from the graduate school of Shizuoka University in 1980 and was appointed vice president in June 2012.

Katayama resigned as president in April 2012, a time when Sharp's mainline liquid crystal television business was struggling and the firm had just posted a record loss of 376 billion yen for fiscal 2011.

Katayama replaced Katsuhiko Machida as chairman, who took an advisory role, and both gave up their rights of representation to make room for Okuda. The moves were aimed at clarifying management responsibility and promoting the restructuring of the company's businesses.

However, the after-tax loss for fiscal 2012 hit 545 billion yen when extraordinary losses, such as those incurred in reducing liquid crystal panel production facilities, were included.

'Multiheaded' management

Okuda's retirement after only one year as president was reportedly because of the influence retained by other top executives, particularly Katayama after his years in office. There was also a general sense that Okuda's ability to unify the company had deteriorated markedly and that it would be difficult to revive the company under his leadership, the sources said.

Late April was reportedly a time of fierce internal debates over the future of Sharp as the deadline for the medium-term management plan approached.

"Management that can't make decisions can't bring about a revival," was the attitude of Katayama and other top leaders as they pressed Okuda over their dissatisfaction with him for delaying a review of the firm's businesses and putting off sales of overseas factories and other assets, the sources said.

Katayama pressured Okuda to quit in exchange for his own retirement, the sources said. "I'll get out of the way and take the old top managers with me, like Machida and [special adviser Haruo] Tsuji. You should consider it as well. Sharp needs to change now," he reportedly told Okuda.

When Okuda was appointed president in April last year, he entrusted Katayama with the the company's mainline liquid plasma panel business, which left the former president with significant influence.

Machida also retained influence, reportedly boasting to Okuda, "I'll get you some money."

The firm's main banks and bureaucrats at the Economy, Trade and Industry Ministry began to feel uneasy about Sharp's "three-headed" leadership of Machida, Katayama and Okuda, complaining about too many captains and the mixed messages the chairman and president were sending.

Many Sharp executives felt that Okuda had a good personality, but lacked persuasiveness, which weakened his ability to unify the company.

Takahashi was one of the first names to arise as a possible replacement for Okuda as the new face of the company. The vice president has been a constant presence at negotiations over capital tie-ups led by Katayama with Qualcomm Inc. of the United States and South Korea's Samsung Electronics Co.

Sharp's main banks had approved of Katayama's retirement and the centralization of power under Okuda. "As long as there's no interference from above, the banks will give indirect support," said one bank official, signaling approval of a more centralized power structure.

However, the sense of impatience at Sharp has been beyond the banks' expectations. "There's been a lot of reflection over the past year, but now a line needs to be drawn," said one bank president.

The banks were reportedly shocked when they were notified about the personnel changes after Sharp's executive meeting Monday.

With its back to the wall, the company has decided to move forward under a different helmsman.

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