Japan’s Sony Corp. is planning today to name Howard Stringer chairman and chief executive of the world’s second-biggest consumer-electronics maker, according to sources familiar with the matter.
Sony’s board of directors is expected to meet this morning to approve the appointment of Stringer, Sony’s Welsh-born U.S. operations head. It is considered a radical move for a non-Japanese executive to head a leading Japanese corporation.
Stringer has been chief operating officer and vice chairman of Sony Corp’s entertainment business group since November 2003. He also is chairman and CEO of Sony Corp. of America.
If approved, Stringer would succeed Sony Chairman and Chief Executive Nobuyuki Idei, who would be stepping down from his post a year ahead of his planned retirement, which is slated to coincide with the company’s 60th anniversary.
Following the appointment, Stringer is expected to perform his current duties and those of corporate CEO for three to five years, sources said.
In the U.S., sources added, the announcement would be good news for both Andrew Lack, head of Sony’s BMG music division, and Rob Weisenthal, chief finance officer under Stringer at Sony’s U.S. operations. Both are close allies of the new CEO.
As part of the executive changes, Idei’s second-in-command, President Kunitake Ando, also is expected to resign and be replaced by Executive Deputy President Ryoji Chubachi, sources said.
One of the most widely viewed contenders for Idei’s job was Ken Kutaragi, creator of PlayStation. Sources said Kutaragi plans to stay at Sony.
The shakeup comes amid growing criticism of the company’s performance. Although the conglomerate is the world’s biggest electronics maker, it has been struggling to keep up with more innovative rivals – such as Samsung Electronics and Matsushita Electric Industrial.