Sony (NYSE: SNE) is getting a new president. At the Japanese electronics company, the president holds the No.2 spot, under the CEO. What is surprising about the Sony move is that chief executive Howard Stringer will become his own president.
According to Reuters, "Sony Corp, facing a record loss this year, said chief executive Howard Stringer would add the post of president and take direct control of the ailing electronics division at the centre of its problems."
While the electronics division has been doing poorly, it still reports to Stringer. He has the final say over its budget and strategic plans. So, why the change? That is a good question. It may be largely for appearances.
Stringer's tenure at Sony has been close to a disaster. The company has not launched any hot new products in years. Its TV display business produces a commodity, which has plenty of competition. Stringer has not done anything to move or dump these operations.
Over the last year, Sony's stock is off 65%. Maybe it is Stringer who should be leaving.
Douglas A. McIntyre is an editor at 24/7 Wall St.