Shigenobu Nagamori Returns as Nidec's Top ExecutiveReplacing Seki as CEO in Less Than One Year
Seki, who continues to serve as president, was appointed Chief Operating Officer (COO). It was in June last year when Nidec had Seki take over the CEO position from founder Nagamori, who returned to the top management position in less than a year.
During the online briefing, Nagamori explained the reasons for his return to the CEO position, saying, "Quick decisions and actions are becoming increasingly critical. As the founder, I know everything about our business. So I'm going to take the lead to improve business conditions." In addition, he commented on how long he would serve as CEO again, saying, "Around three more years. It will take that long for an employee to develop sensitivity to Nidec's management methods, speed and costs."
Seki was Nissan's number three, but joined Nidec in January 2020 at Nagamori's enthusiastic invitation. He was appointed president in April of that year. The following year, in June 2021, Nagamori handed over the CEO position to him for the first time. "He is the only one who can surpass me," said Nagamori, who had high expectations for him as his successor.
Seki took charge of expanding profits in the business of principal motors for electric vehicles (EVs), which the group has positioned as its largest growth area. However, he has been struggling to improve profits in the face of adversity, such as disruptions in the supply chain caused by the COVID-19 pandemic and soaring resource prices following Russia's invasion of Ukraine. The stock price decline did not stop either. Nagamori said, "I regret that one year was too soon for me to hand over the CEO position." He will step down as CEO again when "I have brought our performance and stock price to a satisfactory level as soon as possible. In other words, it is when investors feel reassured."
According to Nidec's consolidated financial results for the fiscal year ending March 2022 pursuant to International Financial Reporting Standards (IFRS), which was announced on April 21, its operating income, or profit from core business, was 171.4 billion yen, a 7.2 % increase from the previous year.
All stages of earnings and income renewed record highs due to growth in its mainstay products such as motors for home appliances, commercial and industrial motors, and semiconductor inspection equipment propelled by the demand from staying home due to the COVID-19 pandemic and the advance of digitalization.(Translated by Mie Hiuzon, Psyche et l’Amour, Inc.)