Japanese manufacturer LIXIL Group Corporation has today announced the resignation of its CEO. Yoichiro Ushioda expressed his intention to resign as a director at the end of the last Board of Directors. In addition, director Hirokazu Yamanashi stated his intention to retire from the directorship after his current term of office expires at the end of the Ordinary General Shareholders Meeting, and not to consent to a subsequent re-appointment as director.
At this point in time, Mr. Ushioda and Mr. Yamanashi have not indicated their intention to resign or retire from their positions as Representative Executive Officer, Chairman and CEO with respect to Mr. Ushioda, and as Representative Executive Officer, President and COO with respect to Mr. Yamanashi.
Director Yoichiro Ushioda, indicated his intention to resign his directorship with respect to the downturn of performance, due mainly to the losses of LGC’s overseas subsidiary, as recently announced. Mr. Ushioda is responsible for the appointment of the former representative executive officer who was in the service during the corresponding period of the losses. However, he expressed his intention to attend all the board meetings that will be held before the Ordinary General Shareholders Meeting in consideration of the continuity and stability of LGC’s management and supervisory system, and to resign after fulfilling his responsibilities as a director.
Reuters has reported this resignation follows a “boardroom drama” that it says has been unusually fractions and cites the move could “signal vocal minority shareholders are becoming more successful in changing the management of Japanese companies following Prime Minister Shinzo Abe’s efforts to strengthen corporate governance.”