Renesas replaces CEO as performance targets fall short of expectations.
Renesas Electronics Corporation has appointed Hidetoshi Shibata as its new president and CEO, replacing current CEO Bunsei Kure, forced to resign as a result of not achieving performance targets.
In a statement, Renesas said its nominations committee, a voluntary advisory body reporting to its board of directors, evaluated Kure’s performance and decided a change of management was necessary in order to recover its business performance and return the company to a growth trajectory. It said in light of its worsening business performance and a huge gap between targeted financial figures which were set as the mid-term plan in 2016 and the company’s actual performance, it came to the conclusion that Kure did not meet its expectations, especially in view of Renesas’ current situation and as compared with trends at competitors.
Hence the board decided to appoint its current CFO, Hidetoshi Shibata, as the new president and CEO. Shibata joined Renesas in 2013 when the company was in crisis, and as executive vice president and CFO, led structural reform measures, such as personnel reductions, and the reorganization of production sites. He was instrumental in leading the acquisitions of two semiconductor companies, Intersil Corp. and Integrated Device Technology, Inc., which the company said are critical for the company’s future growth.
In many ways, Shibata is a man who knows Renesas inside out. Prior to joining Renesas, Shibata was executive managing director at the Innovation Network Corporation of Japan (INCJ) -- a public-private partnership between the Japanese government and major corporations. While at INCJ, he led a team to invest and rescue Renesas.
Renesas is clearly expecting Shibata's decisiveness will serve the company well as he seeks to improve business performance and consequently the company's stock performance.
Shibata commented, “Whilst we face short-term challenges that require concerted efforts across the company, I believe that Renesas is well placed in our focus markets to continue to create innovative, sustainable solutions for our customers and society at large.” He added he would maintain the positive momentum of the IDT integration process.