Nikesh Arora's decision to quit had the same impact on SoftBank Group Corp. as Reserve Bank of India (RBI) governor Raghuram Rajan's announcement had on Indian stock markets. In both cases, investors ignored their exits, indicating that individuals matter only up to a point, not beyond.
SoftBank shares gained almost 4 percent at the day's high of ¥6070 before closing at ¥5,994, up 2.6 percent from its previous close.
"Shareholders are welcoming this, I think," said Shigeru Kanno, one of SoftBank's shareholders, told Reuters. The Group's annual meeting was slated for Wednesday.
After announcing his decision on Tuesday to quit as the president and chief operating officer (COO) of the Japanese software and internet conglomerate, Nikesh Arora tweeted that he would be staying with the company for one year in an advisory role.
Still there till Jun 30. Then advisor for an year :). Think they dont mind me keeping it there and i am lazy. https://t.co/qU34yQD36E
— Nikesh Arora (@nikesharora) June 21, 2016
Meanwhile, an update on his exit hints that Arora may join one of the many companies SoftBank has invested in, including marquee Indian firms such as Snapdeal, Ola, Oyo, Grofers and Housing.com. Arora will continue to support SoftBank and Masayoshi Son, the Chairman & CEO of SoftBank Group Corp. until his one-year advisory role ends in June next year.
"I have enjoyed working with Masa and the SoftBank team and I look forward to my next challenge. In the meantime I will continue to support SoftBank and our investee companies," Arora was quoted as saying in a SoftBank press release issued on Tuesday.
Arora's exit seems to have come as a relief to investors who felt that his high remuneration was not commensurate with his performance. He was paid $200 million during his almost-two year stint at SoftBank.
"Considering his high compensation he hadn't been able to produce results, so his departure would be accepted by investors," Reuters quoted Yoshihiko Tabei, chief analyst at Naito Securities, as saying. He was referring to SoftBank acquiring a majority stake in U.S.-based mobile network provider Sprint Corp.
Another controversial decision during Arora's tenure was to sell SoftBank's stake in Chinese internet company Alibaba Group Holding for $10 billion.