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UPDATED: Toyo chairman and president both resign

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Both the chairman of the board and the president of Toyo Tire & Rubber Co. are resigning after the company acknowledged falsified performance data involving defective earthquake shock absorbers that were installed in 154 buildings.

Toyo says it will appoint a new management team at a future emergency shareholders meeting to be held no later than the end of 2015. The company also will appoint a chairman or special advisor from outside the company “to ensure strong corporate governance.”

According to a translation of a report released by Toyo, the following nine executives and advisors will resign. Their departures are effective July 1 unless otherwise stated.

Akira Nobuki, chairman and representative director, will resign both positions and return half of the pay earned over the previous 12 months.

Takuji Yamamoto, president and representative director, also will resign both positions effective at the next emergency shareholders meeting. Yamamoto was the group executive officer to Toyo's tire business, as well as the general manager of the North America business unit.

Tetsuya Kuze, executive corporate officer and representative director will resign both positions but will remain with the company. Kuze will be demoted to senior corporate officer and will take a 30% pay cut for six months. In addition Kuze will retain responsibilities as general manager of the administrative division and corporate planning division, and will serve in the corporate purchasing division.

Kazuyuki Ito, a director and senior corporate officer, will resign both positions and take a 30% pay cut for three months. Ito will become an advisor to the company.

Sadao Ichihara, a director, will resign effective at the next emergency shareholders meeting. Ichihara will take a 30% pay cut for six months. Ichihara will continue work as a senior corporate officer, group executive officer of DT business and general manager of the chemical and industrial products business unit. (Note: Toyo's initial announcement mistakenly said Ichihara would give up the role of senior corporate officer.)

Advisor Kenji Nakakura will resign and return half of the pay earned since Jan. 1, 2015.

Advisor Haruhiro Shinsho will retire and return 30% of the pay earned since July 1, 2014.

Corporate officer Toshiaki Okazaki and advisor Gentaro Aoki both will retire. Neither is being ordered to return any pay.

Toyo addressed the "seismic isolation rubber investigation" in a followup press release made available in the U.S. on June 25, 2015. The press release detailed the executive changes above, and also included this statement in full:

"The board decision follows the issuance of a report on June 22, 2015, by the outside investigative team regarding the manufacture and sale of non-compliant seismic isolation rubber products by the company’s Japanese subsidiary, Toyo Chemical Industrial Products Co. Ltd. (“Toyo Chemical”). The board will appoint a new management team at the next emergency shareholders meeting to be held this fall.

Until his successor is appointed, Mr. Takuji Yamamoto will continue in his current role as president to manage remediation efforts at Toyo Chemical, and to effect an orderly transition to the new management team. Separately, the company will appoint a chairman or special advisor from outside the company to ensure strong corporate governance."

Toyo says beginning July 1, 2015, Yamamoto will serve as group executive officer for the seismic isolation rubber task force.

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