Sony on Monday announced a shake-up of senior management that saw Nobuyuki Idei stepping aside as chief executive and replaced by Sir Howard Stringer, head of its US operations.
The shake-up was one of the most sudden changes of management at a large Japanese company. It made Sir Howard, who was born in Britain but has spent his working life in the US, the most senior foreign national to run a large Japanese company since Carlos Ghosn took charge of Nissan Motor. The change has come amid Sony investors’ growing frustration at the pace of change as the company faces challenges to its dominance in the electronics industry.
Sony executives have been struggling to impose a restructuring plan, known as Transformation 60, designed to boost the company’s profit margins and competitiveness. Nevertheless, they are likely to be shocked by the departure of Mr Idei, a lifelong employee who was named chief executive in 1999.
Sir Howard’s appointment was also a surprise. Though respected within Sony and the US media business, most observers assumed he could not rise any further. His candidacy for the top job came after he merged Sony Music with Bertelsmann Music Group to create the world’s second-largest music company, and then put together a consortium to take control of Metro-Goldwyn-Mayer, the Hollywood studio.
The Welshman taking over at the Japanese consumer electronics giant has maintained his genial charm and a ruthless streak,
Sir Howard’s hand has been strengthened by the strong performance of Sony’s entertainment businesses, which now account for about half the com-pany’s net income.
Sir Howard’s appointment would be a setback for Ken Kutaragi, deputy president and chief operating officer, who oversees Sony’s PlayStation business and had been seen as a possible successor to Mr Idei.
