Toshiba accounting scandal may lead to CEO's ouster
Toshiba might be in for a rough, rough ride. Reuters sources claim that the tech giant is going to rack up the equivalent of $2.4 billion to $3.2 billion in charges due to "overstated profits" over the past six years. Investigators are still trying to determine whether or not executives played a role, and they won't reveal the extent of what went wrong until sometime next week. However, their findings may not matter much for CEO Hisao Tanaka -- he'll reportedly have little choice but to resign for letting this scandal happen on his watch. More than half of the board of directors may get the boot, too.
If the reports of bad accounting are accurate, they show that Japan still has a ways to go in its bid to improve the occasionally shaky leadership of its local tech giants. While Prime Minister Shinzo Abe is backing a corporate reform campaign, there haven't been many revelations yet. It's not clear whether Toshiba will be the most prominent example, or if it's just the tip of the iceberg.
[Image credit: Toru Yamanaka/AFP/Getty Images]
