Sony Announce Massive Executive Changes News

Sony today announced the appointment of its first non-Japanese chief executive, as shareholder discontent stemming from the stock of Sony Corp sliding by 73% in five years, led to the replacement of Nobuyuki Idei by Howard Stringer.

Stringer joins the executives of Sony Corp having driven one of the few recent successes of the electronic giant, boosting profit from the entertainment division responsible for movies such as the Spider-Man series.

Having previously overseen Sonyâ??s $2.9 billion purchase of Metro-Goldwyn-Mayer Inc., Stringer will be largely responsible for extending the continuing integration of Sonyâ??s entertainment and electronic businesses, whilst the company continues through its massive restructuring plan.

Management changes continued across the board as shareholders vented their frustration at the poor performance of Sony Corp, with Ryoji Chubachi taking over as President from Kunitake Ando.

Ken Kuturagi, previously considered one of the few forward thinking visionaries on the board, has also suffered from the shareholders fury, stepping down as Executive Vice President to concentrate solely on his position at the head of the videogame division.

Shares of Sony Corp rose by 1.5% after the announcement, marking the highest position in eight months; however the problem facing Sony was highlighted by its $36 billion stock-market value being similar to Apple, despite the iPod maker having a ninth of Sonyâ??s annual sales.

Operating profits at Sonyâ??s consumer electronic division, which accounts for approximately 65% of the 7.5 trillion yen revenue generated in 2003, fell by 23% in the quarter ended December as prices of digital products continues to drop.

The slump has affected Sonyâ??s rivals, with Matsushita Electric Industrial Co., the worldâ??s largest consumer electronic manufacturer, witnessing a 44% drop in its value during the last five years.

However it hasnâ??t been the same story for everybody, with Samsung Electronics decision to focus on cheap prices representing a 90% surge during the five year period, giving it a market value of $75 billion. To give it another comparison, Samsung Electronics posted close to $11 billion of Net Income last year, which equates to more than Sony has earned in the past ten years!

One financial analyst responsible for Sony stock seemed to address the situation and shareholders opinion, concluding that â??Sony needs someone who's a gaijin, a foreigner, who's willing to make big changes.''