Toshiba CEO, 8 Others, Resign Over $1.2 Billion Accounting Cover-Up 85
The BBC reports that Toshiba president and chief executive Hisao Tanaka, along with vice-chairman Norio Sasaki, former chief executive Atsutoshi Niched, and six other executives, has resigned from the company in the wake of an accounting scandal: On Monday, an independent panel appointed by Toshiba said the firm had overstated its operating profit by a total of 151.8bn yen ($1.22bn, £780m).
The overstatement was roughly triple an initial estimate by Toshiba. Asia Times has an article that delves into the pressure which drove Tanaka and others to misstate their revenue figures so drastically. From that piece:
Top management and the heads of in-house companies acted on “the shared goal of padding nominal profits,” the report said. President Hisao Tanaka and immediate predecessor Norio Sasaki, now vice chairman, denied intentionally delaying loss-booking, but those who worked below them thought they were being instructed to do so, according to the report. Top management would assign “challenges,” or earnings improvement targets, at monthly meetings with the heads of in-house companies and subsidiaries. These targets were especially aggressive in fiscal 2011 and fiscal 2012, when Sasaki was president. In-house company chiefs felt enormous pressure to meet the goals, the committee concluded.
After the announcement of Tanaka's resignation, the company's stock actually rose six percent. CNBC explains:
Getting the bad news out appears to have eased investors' concerns about the stock.
"The total problem has been quantified and there's a likely chance the CEO will have to quit. That's been seen as the end of that," said Amir Anvarzadeh, director of Japan equity sales at BGC Securities.
this is Japan (Score:5, Insightful)
Re:this is Japan (Score:5, Insightful)
This is CEOs. Normal people go to jail for embezzling, CEOs resign with a golden parachute.
I just wish they'd have to jump out of a plane with it...
Re:this is Japan (Score:5, Funny)
This is CEOs. Normal people go to jail for embezzling, CEOs resign with a golden parachute.
Some maintenance guy or the fellow they just hired in the mailroom are going to be in big trouble over this.
Re: (Score:1)
Re:this is Japan (Score:5, Insightful)
Re: (Score:2)
For those still unsure, here's some inspiring tune: https://www.youtube.com/watch?... [youtube.com]
Re: (Score:3)
This is CEOs. Normal people go to jail for embezzling, CEOs resign with a golden parachute.
I just wish they'd have to jump out of a plane with it...
This is Japan. To resign, CEOs have to say "gomennasai" (sorry) first. Then they are entitled to get a golden parachute.
Re: (Score:2)
Re: (Score:3)
Re: (Score:3)
No no no, Enron had a lot of "related party transactions" (read: embezzling), where officers were making like 10 times what their Enron salary was from their business doing business with Enron.
But even in the same vein, Enron had practically no operating profit, not 1/3 of their stated operating profit. And they were claiming far bigger numbers.
This is bad, but Enron was... well, at least one jury has decided... more of a fraud than a company. Toshiba makes products and money
Re: (Score:2)
No no no, Enron had a lot of "related party transactions" (read: embezzling), where officers were making like 10 times what their Enron salary was from their business doing business with Enron.
But even in the same vein, Enron had practically no operating profit, not 1/3 of their stated operating profit. And they were claiming far bigger numbers.
This is bad, but Enron was... well, at least one jury has decided... more of a fraud than a company. Toshiba makes products and money
I had forgotten about that...I stand corrected.......
Re: (Score:2)
Re: (Score:1)
Huh? There was no embezzling here - nobody walked off with cash from the business.
Re: this is Japan (Score:2)
The CEO walked away with his paycheck longer than he probably deserved.
No argument on that. (Score:2)
No argument there, but that's fraud not embezzlement.
Something like (Score:2)
this? [gocomics.com]
Re: (Score:2)
Re: (Score:2)
Re: (Score:2)
We should introduce that tradition here.
Alternatively we can return to having them use that golden parachute, either's fine with me. But I call dibs on the pay-per-view rights!
Re: (Score:2, Insightful)
And then a million people (men, women, children, civilians all) died when the only atomic weapons used in combat were dropped on them. I'd say that balances out Pearl Harbor a bit. I don't think they "got away" with anything.
Re: (Score:3)
Yep, those civilians were totally to blame for Pearl Harbor. They deserved to die.
Good job, America.
Re: (Score:3)
Well, it's more complicated than that. There were military targets in Hiroshima and Nagasaki.
Consider the alternative, though: We now know that Japan was going to basically fight to the last man if we invaded, they were projecting losses of up to 20,000,000 people. You could argue that we saved 19,000,000 lives by dropping the bomb. It doesn't make it less reprehensible, but it's a factor that should be considered.
Re: (Score:3)
Certainly. Other factors to be considered would be regional commander's documented willingness to drop nuclear bombs on other countries to "combat communism", which most certainly wasn't about "saving 19.000.000 lives".
Re: (Score:2)
Except that they did. Consult relevant history.
Re: (Score:2)
Well, it's more complicated than that. There were military targets in Hiroshima and Nagasaki.
Consider the alternative, though: We now know that Japan was going to basically fight to the last man if we invaded, they were projecting losses of up to 20,000,000 people. You could argue that we saved 19,000,000 lives by dropping the bomb. It doesn't make it less reprehensible, but it's a factor that should be considered.
Doesn't it make it less reprehensible? I know that since we cannot know exactly what would have transpired otherwise, it's hard to say if it was a "good decision." But it seems reprehensible is the wrong word.
Re: (Score:2)
Killing thousands (mostly civilians) is always reprehensible, but you're right that there are probably degrees to it.
Re: (Score:2)
Re: (Score:2, Insightful)
Re:they made the planes the bombed pearl harbor (Score:5, Insightful)
"Yep, those civilians were totally to blame for Pearl Harbor. They deserved to die."
Others have spoken to the military targets near, and what other options there were, and I think to the point that the nuclear bombs did not cause the most casualties, and are only the most memorable.
But, further,
A, the guys at Pearl Harbor, and all the other places people died in the early stages of the war,
were they responsible for the issues that made Japan feel like an attack was a good idea?
Did they deserve to die? Did they deserve to die as they did? ( read about the Bataan death march, among other atrocities )
( noted that this does not make the civilians in Japan deserving of death, particularly )
B, how else would you have proceeded in the political leadership of America's place?
What do you think they should have done instead?
A bit of a rhetorical question, but seriously posed.
If you think about responding with "negotiate", i'm going to suggest more reading/research on your part.
Civilians jumped off cliffs during the invasion of Okinawa.
Japanese soldiers were still found on Pacific islands, waiting for the return of the victorious Japanese on into the 1970's
( my point being how fanatical some could be coming out of that society )
Re: (Score:2)
You mean the same civilians that chose to keep the same government in power that authorized Pearl Harbor?
https://en.wikipedia.org/wiki/... [wikipedia.org]
Re: (Score:2)
Yep, those civilians were totally to blame for Pearl Harbor. They deserved to die.
Just like those idiots in the World Trade Center. Damn fools just HAD to go to work that day.
Re: (Score:3)
And then a million people (men, women, children, civilians all) died when the only atomic weapons used in combat were dropped on them. I'd say that balances out Pearl Harbor a bit. I don't think they "got away" with anything.
First, your death count is wrong-- it's high by roughly a factor of five. Second, the deaths from the nuclear weapons were small compared to the deaths from conventional bombings. War kills people. If you're complaining about bombing, complain about that. Third, the estimated death count from the nuclear weapons was about equal to the death rate from five weeks of the war: if the bombing shortened the war by five weeks, it saved lives. Fourth, the Japanese put every man they had into the war effort-- even
Re: (Score:2)
You're quite correct about the casualty numbers. I stand corrected.
And I'm not arguing with you about the justification for using the bomb. In another comment I lay out basically the same theory. It's reprehensible in a vacuum, but considering the circumstances, it's at least defensible.
Re: (Score:2)
While they were and are highly diversified, as is the custom for zaibatsu/kereitsu, I am not aware that Toshiba made warplanes, or any kind of planes. Others, of course, did, and some still exist, like Mitsubishi. If you can point to some evidence that Toshiba ever made planes, I'd be obliged.
Re: (Score:1)
Bah (Score:2)
They should learn from my country's statespeople: NEVER RESIGN!!!
Re: (Score:3)
everyone lost their 401Ks
I find this interesting. I know of people who strangely put a lot of their 401Ks into the stock of the company they work for, but mostly in my experience 401k investments aren't particularly tied to the company of employment. At least I make sure my investments are not particularly tied to any one company.
Re: (Score:2)
everyone lost their 401Ks
I find this interesting. I know of people who strangely put a lot of their 401Ks into the stock of the company they work for, but mostly in my experience 401k investments aren't particularly tied to the company of employment. At least I make sure my investments are not particularly tied to any one company.
If everyone lost their 401k, it is probably because the company was withdrawing the funds from the paychecks, but not actually funding the 401k program with them, or the company managed their own 401k portfolio rather than using an outside investment company, and then the money was lost when the company went belly up.
Re: (Score:1)
They should come here for work (Score:2)
Re: (Score:2)
That kind of accounting would not be scandalous here, and likely result in huge bonuses instead. I see great futures for them on Wall Street or with any of a number of legal or accounting firms.
1.2 billion here, 1.2 billion there, after a while you're talking about big money.
Re: (Score:2)
That kind of accounting would not be scandalous here, and likely result in huge bonuses instead.
Fat bonuses for short term profit margins are the reason for the scandal to begin with.
Re: (Score:2)
That kind of accounting would not be scandalous here, and likely result in huge bonuses instead.
Fat bonuses for short term profit margins are the reason for the scandal to begin with.
In other countries, it is scandalous to do such things. Here it is "business as usual" or "the infinite wisdom of the (invisible hand of the) free market".
Re: (Score:3)
That said, Japanese business culture still tends to have a sense of shame that's long ago been surgically removed from most executives in the U.S. (I think it occurs as part of the MBA program).
Re: (Score:2, Interesting)
True. I lived in Japan for a couple of years and this is what I took away:
- The Japanese see themselves not merely as individuals, but as a collective
- The Japanese culture is steeped in honor and tradition, and you (particular Japanese) don't want to be the one to throw the cat in among the pigeons
- Individuality is not seen the same as in the West (they see our way and think selfish)
- Trite, but there is no "I" in team, and this is borne out in how the Japanese approach team building and why they are good
Re: (Score:2)
Isn't this traditionally the kind of event where any Japanese man with any amount of self-respect commits Hara-Kiri instead of pointing fingers at each other?
Just wondering.
At least in Japan, they resign in disgrace. In the U.S., they would fight to the last breath to hold onto their job, and then when they got ousted by the Board, they would get a golden parachute, and another fortune 500 company would hire them on to help drive them into bankruptcy.
1.2 Billion (Score:5, Informative)
Remember folks. When you lie, cheat, and steal for 1.2 billion dollars, we will talk about all the pressures you are under and force you to resign in disgrace. If you rob $100 from the cash register at quickie-mart when the cashier isn't looking, we'll talk about how you're the scourge of society and put you away for 20 years.
Re: (Score:2, Interesting)
Unless you're black... Then the cops just shoot you dead for stealing $20... or even less.
This planet makes no logical sense. We elevate sports people to godhood while scientists and teachers are vilified. We make TV celebrities out of people with sex tapes, but can't show the sex tape on TV. Everything is topsey-turvey, forwards is backwards, up is down. Steal a billion and you're promoted, steal a loaf of bread and you're a thug. When corporations don't pay taxes, that's just good business, but when peopl
Re: (Score:2)
See what happens if you overstate your personal income by that much and then borrow money from the bank.
Re: (Score:1)
Re: (Score:2)
In Japan? Seriously? You really think the cops do that? There aren't any black people, the ones they do have are concentrated in Tokyo, and the majority of them are from Africa, not America. The violent culture just isn't there. The Africans are just happy to be out of Africa and the African-Americans are playing up the hip-hop bit to screw lots of Japanese girls.
I'm curious if you can point out a time in human history when everything made logical sense. Much like your post above, it doesn't make an
Re: 1.2 Billion (Score:2)
It's not a bug, but a feature of the society owned and operated for the benefit of the top 0.5% by wealth.
Re: (Score:2)
Unless you're black... Then the cops just shoot you dead for stealing $20... or even less.
What a fascinating story. I'm sure it is on the internet somewhere. Perhaps you could provide a link?
Re: (Score:2)
Remember folks. When you lie, cheat, and steal for 1.2 billion dollars, we will talk about all the pressures you are under and force you to resign in disgrace. If you rob $100 from the cash register at quickie-mart when the cashier isn't looking, we'll talk about how you're the scourge of society and put you away for 20 years.
And? Adults repeat the same pattern over and over, the same pattern they learned during schooling. At school you're judged based on your scores. With good scores, a youthful indiscretion is worth a mere reprimand. Similarly, during adulthood in the (American) society, you're judged based on the $$ you earn. A CEO is (usually) at the top of the scale, and as long as his bad behavior doesn't exceed the company's boundaries, he is forgiven.
In a way, the CEO acts on behalf of the rest of the company. His act
Re: (Score:2)
They didn't actually steal 1.2 billion. They claimed to have earned 1.2 billion. If you claim to have earned $100, nobody will give a shit.
And, these executives will surely face jail time.
Financial Picture (Score:1, Offtopic)
Re: (Score:2)
The real lesson is go big (Score:2)
Re: (Score:3)
I don't think you do go to prison for claiming to have made $1200 more than you really did. At least not typically.
Re: (Score:2)
Same as always.... Kill someone and you`re a killer.... kill 100000 and you`re a conqueror...
Oh dear! 1.2 billion! Poseurs! (Score:1)
You are just not going to outdo the Americans [reuters.com]. And resign? Please! Here you get promoted, might even become president of the country, and the job will be waiting for you when you finish your term/sentence..
The Corporate Myth (Score:1)
is basically just massive scale tax avoidance procured by hiring ex ministers who work for big accountancy firms.
these people should be imprisoned for life and all their assets impounded but instead they just resign and get lucrative consultancies do the same thing elsewhere
Life imitates art (Score:2)
One need only recall Kurosawa's "The Bad Sleep Well" (1960) to note that nothing really has changed.
Desparation with tablet sales (Score:3)
Corporate Japan (Score:3)
I really don't know where Japan is heading. Although it has little foreign debt the government is heavily in monetary debt to the people. The future is bleak.