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Sony Corporation Announces New Management Structure
TOKYO, Japan, March 7, 2005 --- Sony Corporation's current management team today proposed the creation of a new management structure designed to expand upon its core strengths as a global electronics, entertainment and technology company. The proposal was approved at the Board of Directors' Meeting held today. Effective June 22, subject to approval at Sony Corporation's Ordinary General Shareholder's Meeting that day, the following new management team will lead the company:
Sir Howard Stringer (currently Chairman & CEO Sony Corporation of America, Corporate Executive Officer, Vice Chairman and COO Sony Entertainment Business Group) will assume the position of Chairman, Group CEO and Representative Corporate Executive Officer, Sony Corporation. Sir Howard will run Sony's overall group business operations on a global basis from headquarters in both New York and Tokyo. In this new position, he will also continue in his role as the head of the Entertainment Business Group and head of Sony Corporation of America.
Dr. Ryoji Chubachi (currently Corporate Executive Officer, Executive Deputy President and COO of MSNC and EMCS) will assume the position of Representative Corporate Executive Officer, President of Sony Corporation and CEO of the Electronics Business Group of the company. In this new position, Dr. Chubachi will have overall responsibility for Sony's electronics businesses worldwide.
Mr. Katsumi Ihara (currently Corporate Executive Officer, Executive Deputy President and Group CFO) will assume the role of Representative Corporate Executive Officer, Executive Deputy President and Group CFO, Sony Corporation. Mr. Ihara will oversee financial matters and support Sir Howard and Dr. Chubachi with respect to overall corporate strategy and resource allocation.
The current management team led by Mr. Nobuyuki Idei, Representative Corporate Executive Officer, Chairman and Group CEO has implemented an effective reallocation of group-wide resources and promotion of cross-border alliances within the Sony Group. This has resulted in the significant strengthening of the entertainment content businesses, the solidifying of the mobile phone business, the development of the next generation semiconductor chip, and the integration and expansion of the financial services business. As a result, Sony is now poised to move forward with its global entertainment, electronics and technology strategy.
This is a pivotal year for Sony Corporation, and this new structure will enable the company to streamline its operation, and provide a more cohesive focus for operating its businesses around the world in a proactive and strategic manner.
In addition the Nominating Committee agreed to submit the nomination of the following officers as Board member candidates to be formally appointed at the meeting of Sony Corporation's Ordinary General Shareholders' Meeting on June 22, 2005 in Tokyo.
According to the above, the following current members of the Board will resign from their respective Board memberships as of June 22, 2005.
While formal appointments will be made on June 22, this management transition will begin effective immediately.
Nobuyuki Idei, who has served as Director, Representative Corporate Executive Officer, Chairman and Group CEO and Kunitake Ando, currently Director, Representative Corporate Executive Officer and President will become Chief Corporate Advisor and Advisor of Sony Corporation, respectively, as of June 22 and will continue to support the new management team from an overall Sony Group management standpoint.
(Comments from Nobuyuki Idei)
From June, the Sony Group will have a new management team centering on Sir Howard Stringer and Dr. Ryoji Chubachi. Both men have a deep understanding of Sony's great tradition and through their open management style they will focus intensely on energizing the entire Sony Group. Sir Howard is an executive admired both within the Sony Group and in the wider business community. His global perspective allows him to bring Sony's electronics and entertainment groups together and to integrate their resources effectively. Naturally, Sir Howard fully understands Sony's longstanding spirit of freedom and open-mindedness. Dr. Chubachi's deep experience with the electronics business and profound understanding of technology issues have won the respect of Sony's engineering community. The new management team of Sir Howard and Dr. Chubachi joined by Mr. Ihara will work together to successfully integrate Sony's abundant resources in electronics, entertainment and technology. I have great confidence in their ability to lead Sony boldly and flexibly into the future. It has been the greatest honor for me to lead Sony for 10 years as this global company has transitioned from analog to digital, integrated its electronics and entertainment cultures and moved into the broadband age. I have the highest expectations for Sony as it begins a new phase under a new management team.
(Comment from Kunitake Ando)
Since I became President in 2000, there have been radical changes in the global business environment. However, I firmly believe that the current management team has laid the foundations for future growth. Our mobile phone business has been revitalized through the establishment of Sony Ericsson Mobile Communications (SEMC) and we have created a stronger and more efficient production, sales and distribution platform. With this base secured, Mr. Idei and I concur that now is the best time to make the transition to a new management team. Our designated President Mr. Chubachi has a deep knowledge of the key devices that are essential to success in the technology and electronics business. He also fully understands the production processes that are at the heart of any manufacturing company and I believe he is the right person to lead Sony's electronics business into its next phase of development. I urge all Sony employees to give their full support to the new management team as we move forward to a new era for Sony.
(Comments from Sir Howard Stringer)
I am delighted to be joining Dr. Chubachi, Mr. Ihara and the extremely talented global management team to lead Sony Corporation. Sony has an unparalleled legacy of boldness, innovation and leadership around the world. Together we look forward to joining our twin pillars of engineering and technology with our commanding presence in entertainment and content creation to deliver the most advanced devices and forms of entertainment to the consumer. I am grateful to Mr. Idei and to Mr. Ando for the confidence they have shown in me, and the Sony Board of Directors for their support, and to the many talented executives throughout this organization who have shown their desire to lead and to innovate. We have clearly demonstrated in our US operations that we can achieve significant cross-company efficiencies, and at the same time deliver both extraordinary quality and record returns. I believe the entire global organization is hungry to make this same transition, and all of us in senior management are committed to achieving that goal.
(Comments from Ryoji Chubachi)
This is a pivotal time for Sony Corporation, and I keenly feel my responsibilities. My first priority is to revitalize our electronics business in close coordination and cooperation with Sir Howard and Ihara-san. Building on Sony's legendary corporate culture of creativity and speedy implementation, we will work to deepen communication and enhance our entire group performance. I will give Sir Howard full support to achieve the paramount goal of transforming Sony.
(Comments from Katsumi Ihara)
The next chapter in Sony's history will be its most exciting. We have already made tremendous strides to expand cross-company initiatives and address business efficiencies. The solid growth of our US operations and the continued brand strength there will help inspire many of our future activities. Since I joined Sony, I have experienced almost all areas of the company's consumer electronics business. I also have had opportunities to manage Sony's overseas affiliates. Together with Sir Howard and Chubachi-san I look forward to the many opportunities before us.