Sharp CEO Faces Succession Dilemma
Recent reports reveal that President & CEO of Sharp, Tai Jeng-wu, is facing succession issues, as he ponders whether he should continue in his role at the Japanese-based company.
Taiwanese trade publication, DigiTimes, claims that Jeng-wu said he would step down when Sharp’s shares resume First Section trading on the Tokyo Stock Exchange.
Sharp was downgraded to Second Section trading in August 2016 following a prolonged business slump, however, was resumed its First Section post last week, on the back of improved earnings.
Revelations have emerged, that Sharp’s board of directors and some shareholders have expressed their desire for Tai Jeng-wu to continue leading the company.
Jeng-wu has reportedly admitted that the time required to restore Sharp’s shares to First Section trading was shorter than he expected, further complicating the terms of his possible resignation. Market commentators previously forecast that the endeavour would take 2 – 4 years.
DigiTimes reveals that Tai has offered a proposal to Sharp, to consider a Co-CEO, thereby enabling him to delegate various responsibilities, as he looks for a suitable successor.
Thus far, no details have been finalised, with Jeng-wu adding that the process may only commence after his return to Japan on December 18th.
The company posted net profits of US$177.76 million for the July-September period – notably, its fourth consecutive quarter of net earnings. Sharp posted a net loss of JPY17.9 billion in the same period last year.
Sharp’s share price has reportedly increased four-fold over the past year.