Toshiba chief executive to resign over accounting scandal
- Published
Toshiba chief executive Hisao Tanaka has already apologised for accounting problems at the firm
Toshiba's chief executive and president Hisao Tanaka is to resign after the company said it had overstated its profits for the past six years.
He will be succeeded by chairman Masashi Muromachi, with vice-chairman Norio Sasaki also stepping down.
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 Toshiba estimate.
The finance minister, Taro Aso, said the case could undermine confidence in corporate governance in Japan.
The inquiry found that the misreporting of profits began after the financial crash seven years ago, when senior managers began imposing unrealistic performance targets.
"Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors," the report said.
"Therefore, when top management presented 'challenges', division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors."