Hisao Tanaka, the CEO and president of Toshiba, has announced his resignation after the company was hit by an accounting scandal.
As CNN reports, Masashi Muromachi will step in as interim president, following the affair whereby it emerged that Toshiba had overstated its profits to the tune of more than a billion dollars over the last half a decade.
The resignation came as no great surprise – indeed, as we reported last week, Tanaka didn't have much choice but to tender his resignation given the scandal happened when he was at the helm.
The penalty is likely to be harsh too, with the fine likely to tip up towards the $3 billion mark according to Reuters.
Naturally, the chief executive isn't the only casualty, with Norio Sasaki, vice chairman of the board, and Atsutoshi Nishida, an adviser who used to be an executive, also leaving Toshiba.
In an official statement, Toshiba said the company takes the situation "very seriously" and deeply apologised to shareholders and investors. It further added: "The company will thoroughly analyse and examine the investigation results and recommendations received from the Independent Investigation Committee, and reflect them in our management practices, as well as examine measures to prevent recurrences."
Toshiba also said it would make "our best efforts to regain the trust of shareholders", and obviously the changes in the top brass are a necessary starting point.