SoftBank’s President and COO Nikesh Arora has resigned from his post. Nikesh Arora was earlier tipped to become the next CEO of the firm.
SoftBank was founded in 1981 by Mr. Son. In 2006, this software distributor company acquired Vodafone Group PLC’s Japanese operations. SoftBank then rebranded it and transformed it into Japan’s third-largest mobile-phone service provider.
Arora – former Google executive – is one of the highest paid executives in the world, receiving $135 million in 2014 and $73 million last year. He joined SoftBank about two years ago, and since then the company has invested nearly $4 billion in startups around the world.
In March, SoftBank announced that it is planning to separate its domestic mobile business (profitable but slow-growing) from its overseas operations (fast-paced but riskier).
He came under fire from a group of investors earlier this year for being overpaid and not performing as per expectations. The group criticized Arora in a letter sent to management. However, Arora’s position never seemed to be in danger, and claims against him were found to be “without merit” in findings of a review published yesterday by the firm. The committee was created in February and comprised of independent members of SoftBank’s board of directors. Despite getting vote of confidence, Arora resigned from his job position yesterday.
SoftBank, in a statement, said the reason for Arora’s departure was a disagreement over the timing of his accession to CEO.
“Masayoshi Son, Chairman & CEO of SBG, had been considering Arora as a strong candidate for succession. Son’s intention was to keep leading the Group in various aspects for the time being, while Arora wished to start taking over the lead in a few years’ time. The difference of expected timelines between the two leads to Arora’s resignation from the position of Representative Director and Director of SBG with the expiration of the term of office and his next steps.”
“I was thinking of handing over my job as CEO when I turn 60, but thought maybe I’m still a bit too young, and still have energy to continue,” the 58-year-old Mr. Son said.
According to Mr. Son, Mr. Arora wouldn’t be reappointed to his position at Wednesday’s shareholder general meeting.
Mr. Arora said he will now serve SoftBank as an adviser.
“This will allow me to think about my next move,” Mr. Arora said.
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