Later this week, current CEO Bunsei Kure will be replaced as Representative Director, President and CEO by Hidetoshi Shibata, the finance officer.
The move was prompted by recent meetings of Renesas’ Nominations Committee.
“In light of the worsening business performance and a huge gap between the targeted financial figures which were set as the mid-term plan in 2016 and our actual performance, the Nomination Committee began its evaluation on whether the current CEO Bunsei Kure is the suitable Executive for recovering Renesas’ business performance and returning the company to a growth trajectory,” said the company in a strongly worded statement that is almost unprecedented for a Japanese company.
“The Nomination Committee came to the conclusion that the current President and CEO does not meet the committee’s expectations for the future Executive, and in view of the current situation of the company together with the trends at competitors, the Nomination Committee concluded that a change of management is necessary. The Nomination Committee reported to the meeting of Board of Directors held today its recommendation that the current President and CEO step down.”
The new CEO joined Renesas in 2013 when the company was in crisis, and as Executive Vice President, Member of the Board and CFO, led the structural reform measures, such as personnel cost reductions, and the reorganization of production sites. He was also instrumental in leading the acquisitions of two US semiconductor companies, Intersil and Integrated Device Technology.
“We evaluated Mr Shibata highly for his experience in leading structural reforms, which will enable him to leverage the lessons learned to take effective measures quickly in order to break away from the current unfavourable business performance and stock price stagnation,” said the committee. “When considering the company's rebuilding and further growth amidst the rapidly changing semiconductor industry, we determined that he is best qualified to be the next President and CEO."
“Whilst we face short-term challenges that require concerted efforts across