Toshiba wants new blood to lead its board; Interim president stays

“They’re caught with the recent potato and have to be at a loss as to what to do”.

“It’s doubtful that they will think of themselves as people with skin in the game”, he said.

Toshiba said it would keep interim President Masashi Muromachi in his role for a longer period, maintaining stability but possibly disappointing some investors who hoped for a new leader.

The Tokyo-based maker of products ranging from submarine systems to semiconductors plans to trim its board of directors to 11 from 16 members, while appointing a majority of outsiders to help improve oversight.

Reuters adds that Toshiba’s announcement follows the wave of criticisms it received over the accounting scandal and the efforts of the Japan government to make Japanese companies more attractive to foreign investors.

The company previously had four outside directors including two former diplomats, but analysts said they likely lacked the experience and collective confidence to question top executives.

JAPANESE energy and electronics giant Toshiba Corp says it expects to book a loss in the current fiscal year and is beefing up its management standards after an investigation found extensive problems with its accounting and corporate governance. Investigators last month blamed Toshiba’s accounting irregularities on a corporate culture that rarely challenged authority figures.

Itami was the only independent director to remain in the board of directors after the shake-up.

Shiseido Company’s former Chief Executive Shinzo Maeda has also been inducted into the Toshiba’s board.

Following approval of the candidates at an extraordinary shareholders’ meeting in late September, Toshiba will have seven external directors on its 11-member board.

Former president Hisao Tanaka and other executives resigned after a committee reviewing its earnings said in July that the company padded its operating profit by about ¥156 billion (.25 billion) over six years to the end of 2014.