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Why is Nikesh stepping down from his post as President & COO?
Mr. Son wants to continue as CEO for a number of years to implement future initiatives that he has in mind and does not want to keep Nikesh as a CEO-in-waiting indefinitely. Both thought this action would be to each other’s benefit.
Why is it happening now?
The announcement is timed to be consistent with the governance requirements. Nikesh is not seeking to be re-elected as a Representative Director.
Who decided it?
It is a joint decision.
What will happen to the SBGI / the investment team?
Going forward, Ron Fisher, in partnership with Alok Sama, will take over management of the investment side of the business.
What happens to Nikesh’s chairmanship at Yahoo Japan?
He would be stepping down.
Does this announcement signal a change in the SoftBank 2.0 direction?
No. SoftBank 2.0 was laid out by Masa and Nikesh as a vision for all of SoftBank, not just the investment side of the business.
Some investors feel like SoftBank has been raising cash to fund another large deal. Does Nikesh’s departure reflect disagreements over capital allocation going forward?
No, we are in complete agreement that we are using the proceeds of our recent exits to strengthen our financial position and capital structure.
Nikesh bought a large volume of SBG shares. What will happen to them?
Mr. Arora has sold his shares to Mr. Son, incurring a small loss.
Yesterday SBG announced an independent committee found that allegations against Nikesh were without merit. Is his departure in any way tied to this investigation?
Not at all. A separate communication was sent out yesterday, stating explicitly that the Board has exonerated Mr. Arora from this matter. This was done to ensure that the two matters are not related.
Will Nikesh step down as a director of Sprint?
Yes.
How did Nikesh contribute to SoftBank’s financials?
Nikesh and the SBGI team spearheaded a set of growth oriented investments in ground-breaking companies like Snapdeal, Ola, Oyo, Coupang and SoFi. He also provided strategic guidance for sale of some shareholding Alibaba and Supercell, resulting in profits.
What compensation will Nikesh get from April 2016? Will he get a large severance package?
With Nikesh’s steer, we have generated over $ 20 billion in cash in one month, a first in SoftBank’s history . We will compensate him in accordance with global standards.
How will Nikesh’s departure affect relations with the many portfolio companies he decided to invest in?
Mr. Arora will continue to support various investments as an advisor.
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