TEPCO chairman or president to resign in June

The chairman or president of Tokyo Electric Power Co. will resign in June, but the company has not decided who will take charge amid the crisis at the Fukushima No. 1 nuclear power station.

Since President Masataka Shimizu was temporarily hospitalized after the March 11 tsunami crippled the plant, he will likely resign first, and Chairman Tsunehisa Katsumata will concurrently serve as president in the interim, industry observers said.

Katsumata said at a news conference April 17 that he is fully aware that both Shimizu and Katsumata are responsible for TEPCO's management. But he said he has not held discussions with Shimizu on whether they should resign together or if one of them should stay on.

The chairman said he is trying to come up with the best choice for TEPCO.

The resignation will be announced at the company's general shareholders meeting scheduled for June.

A top TEPCO executive hinted that Katsumata and Shimizu should not resign simultaneously. The executive said that although someone in top management must resign given the public's anger toward the company, the crucial role of managing the company should not be just thrown onto somebody else's shoulders without careful consideration.

To secure funds for compensation regarding the nuclear accident, Katsumata said he will use every means available, including downsizing as well as selling the company's stockholdings, real estate and other assets.

But he also said financial support from the government will be needed to execute all of TEPCO's measures. Katsumata also said TEPCO has asked the government to formulate compensation plans as soon as possible.

After TEPCO's announcement, Banri Kaieda, minister of economy, trade and industry, told reporters that the government was discussing the establishment of an organization to handle compensation issues.

He did not say when a decision would be made on this organization.