When Sony Group announced a leadership reshuffle, it was not the choice of president Hiroki Totoki taking over the role of CEO as well that got heads to turn. Instead, the promotion of Lin Tao as CFO, marking the first time a woman was chosen for that position at the group, caught the attention of executives.
“The most interesting part of this personnel change is the CFO position,” a Sony Group executive said.
According to a January announcement, Totoki will take over as CEO from Chairman Kenichiro Yoshida in April. Both men have something in common on their resumes: having spent time as CFO.
CFO, a title Totoki currently holds, is considered a stepping stone toward becoming the head of Sony Group. Not only does the position act as the group’s treasurer, it oversees a wide-ranging business portfolio that includes video games, movies and semiconductors.
Many thought Naoya Horii, a senior vice president in charge of corporate planning, would land the role since he is considered Totoki’s trusted aide. But the position went to Tao, who will also begin her new role in April.
Tao first joined Sony in 2000, working at the gaming unit responsible for the PlayStation, as well as in the smartphone business. In 2016, Tao was placed in the CEO office, where she worked closely with former president Kazuo Hirai and his successor Yoshida.
In 2021, she began her current role as vice president in charge of finance, corporate development and strategy at Sony Interactive Entertainment (SIE), the subsidiary in charge of the gaming business.
In that capacity, Tao was instrumental in closing multiple acquisitions, including the USD 3.7 billion deal for Bungie, the US game developer behind the Destiny and Halo franchises.
When Totoki took charge of SIE as chairman in 2023, and then as interim CEO the following year, Tao served as his top deputy as he sought to restructure the financially distressed gaming business.
Now Sony Group is pursuing a growth strategy centered on the entertainment segment.
“The 21st century is the era of entertainment,” Yoshida said at an earnings call in February. “And the major bearer of that trend are networks.”
With Tao intimately familiar with the gaming business, a sector that delivers content to consumers via networks, she was seen as a strong candidate for CFO.
Totoki said diversity is essential for corporate growth during the earnings briefing.
“We have diverse human resources and human business sectors … by merging them we can create something brand new,” Totoki said.
Tao has received praise for her business acumen. She is said to be unafraid to voice dissenting opinions to top management and is described as a global talent with a deep understanding of business.
People have also said Tao is logical and thoughtful, and has a knack for putting people at ease. She has a gift for connecting with people from different backgrounds, according to people who know her.
“A female CFO would have an impact in terms of diversity,” said a Sony Group executive.
Tao’s promotion is meaningful because “they probably wouldn’t make her CFO unless they had the intention of making her the next president,” said a former group executive. However, there are other potential candidates for that position, such as chief digital officer Tsuyoshi Kodera and Hideaki Nishino, SIE’s incoming president and CEO.
“The appointment of the next president is still a long way off, and we don’t know if Tao will be the president,” a current Sony Group executive said.
When Hirai became CEO in 2012, he made structural reforms. Yoshida, who took over as CEO in 2018, shook up the business portfolio and relaunched Sony Corp. as Sony Group.
As the newly appointed CEO, Totoki will be expected to lead the company to growth.
In 1995, Sony became the first Japanese corporation to establish the CFO position, which was assumed by Tamotsu Iba.
A CFO “is a good partner to the CEO and the guardian of corporate value,” Iba wrote. Tao in turn has said there is no perfect person for a role, but there are perfect teams.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.