Is Sony CEO Stringer's Job in Danger?

In an unusual public comment made during a gathering of high-ranking business executives this morning in Barcelona, Sony Advisory Board Chairman -- and, as some still see it, chairman -- Noboyuki Idei is quoted by Reuters as having commented that he expects the next CEO of his company to be someone from the "young generation," about 40-45 years of age, and specifically Japanese.

"I think it is very important for Japan to open up the country and communicate with other countries," Idei reportedly said, in response to a question about whether he believed Sir Howard Stringer was the right choice to serve as CEO. Idei did respond in the affirmative before giving this explanation, and he did not say how soon such a change would be made.

Since a corporate reorganization in March 2005, Stringer's role was elevated from Chairman and CEO of Sony Corporation of America to Chairman and Group CEO of Sony Corporation worldwide. Idei, in turn, stepped back from his Group CEO role, originally to become Chief Corporate Advisor, although he has been referred to recently as Chairman of the Advisory Board, and thus as Chairman as well. Sony's organizational chart has always been a masterpiece of juxtaposition.

Sony has recently been the bearer of bad tidings for the electronics and media markets. Recently, Sony has had to deliver news of shortages of blue laser diodes necessary for Blu-ray player and recorder devices, which apparently triggered even worse news that the company's key consumer product, PlayStation 3, will have its availability scaled back drastically in North America and Japan, and delayed altogether in Europe.

Stringer has previously referred to both PS3 and Blu-ray technologies as pillars of the company, and critical to the success of the entire corporation going forward.

At the time Idei stepped down from his executive position, some in the Japanese Business press, including the Herald-Tribune/Asahi, speculated that Idei may have been pressured to do so by members of the advisory board. However, as part of the reorganization, Idei was able to add members to the board, thus perhaps consolidating his position there.

If the advisory board is feeling a bit despondent about Stringer's performance, Idei could be registering it subtly, though honorably, through a symbolic act such as this.

Prior to being appointed Chairman and CEO of Sony in America, Sir Howard was briefly an executive with a video firm formed by three regional Bell companies that have since changed allegiances, and before that spent three decades as a journalist, then an executive, with CBS. Sony shares traded moderately lower in early afternoon trading Monday.