Softbank President Nikesh Arora Resigns for Not Being Made CEO
Nikesh Arora, a president and chief operating officer exit the SoftBank. That’s why SoftBank Group on Wednesday, 22 June 2016 declared that Ken Miyauchi, head of the group’s Japanese telecommunications operations, would become president and chief operating officer to replace Nikesh Arora.
Nikesh Arora, the former Google executive crack by the SoftBank founder Masayoshi Son as his replacement, has shortly quit as president after it became clear that Son wanted to remain at the controls longer than first planned.
Shigeru Kanno Said "Shareholders are welcoming this, I think” one of the company's shareholders gathering for the group's annual meeting on Wednesday, 22 June 2016
"The share rise today reflects investors’ hopes that Mr. Son will be in charge for much longer," said Kanno, a senior citizen who said he had been a shareholder since SoftBank went public.
But market analyst said Arora's quick exit late on Tuesday, 21 June 2016 raised questions over the business's disparate investment strategy. Arora had been reshaping the portfolio and bolstering the balance sheet in recent months through a series of asset sales.
SoftBank shares have fallen over 15 per cent in the past year, mainly on concerns about US wireless carrier Sprint Corp, in which SoftBank acquired a majority stake in 2013.
Nikesh Arora who was google highest paid executive on 2012, he was highest paid executive at Softbank also, raising questions among some investors. He has received over $200 million in benefit over the last two years, though he has sold the $500 million of SoftBank shares he bought last year to Son at a small loss.
Chief analyst at Naito Securities Yoshihiko Tabei Said, "Considering his high compensation he hadn't been able to produce results, so his exit would be accepted by investors"
Softbank on Tuesday 21 June 2016 said, “It was also selling its majority stake in 'Clash of Clans' maker Supercell to China's Tencent Holdings.”
Arora was endorsed for those moves, which took much-needed stability to Softbank’s finances, as well as valiant moves into India's fast-growing tech space prompting at least some on Wednesday 22 June 2016 to voice alarm.
A fund manager at Aizawa Securities, Ikuo Mitsui said, "Mr. Arora did achieve, in terms of finding investment targets that bring returns faster they’ve slowed the bleeding at Sprint but they've yet to achieve growth. So that's worrying."