I’ve long argued that Japan’s corporate problem isn’t a lack of talent; it’s a lack of outside air.
When boards finally crack a window and hire a foreign chief, headlines swing between “savior” and “scandal.” So: are foreign leaders good for Japan Inc, or just good copy? Let’s look at results:
I know, I know the gorilla in the room. Today, Carlos Ghosn is shorthand for drama. But if we’re honest about operating performance, the data say something unfashionable.
Before Ghosn (FY1990s → 1999): Nissan had been loss-making for years and was crushed by debt. In FY1999 operating margin was ~1.4% and net automotive debt stood around ¥2.1 trillion. hbr.orgnissan-global.com
During Ghosn (1999–2018): Within three years, Nissan hit 10.8% operating margin and eliminated net automotive debt. Through the 2000s margins stayed high-single to low-double digits — rare in mass autos. global.nissannews.comnissan-global.comcompaniesmarketcap.com
After Ghosn (2019→): Margins sagged and then went negative during the pandemic; the company has been grinding back to mid-single digits, still below peak. companiesmarketcap.com
Yes, Ghosn’s 2018 arrest detonated the alliance and his reputation. But separating governance issues from operational turnaround matters. He delivered the latter in spades; boards hired him to slash debt, lift margins, and globalize
Source: Nissan IR
The quieter foreign CEO
If you want a less polarizing case, look at the humble Kaki no Tane snack (what most Japanese casually call kakipi). In 2022, Kameda Seika elevated Lekh Raj Juneja: Indian-born, naturalized Japanese, to Chairman & CEO.
His brief: push beyond peanuts-and-crackers into higher-value, international lines (allergy-friendly, disaster stockpiles, plant-based). It’s a textbook “bring in global P&L muscle, keep the craft.” オルタナ亀田製菓株式会社, Juneja is also vocal about Japan’s need for immigration to sustain growth.
Source: Kameda Seika IR
Scoreboard: Notable foreign CEOs in Japan
Takeda (Christophe Weber, France; CEO since 2015): Transformed Takeda into a top-10 global pharma via the $59B Shire acquisition. Balance sheet got heavy, shares have been meh versus the boldness of the move, but the pipeline/global footprint are undeniably larger. Succession to Julie Kim in 2026 continues the global tilt.
Net: strategic repositioning achieved; equity returns debatable.
Sony (Howard Stringer, UK/US; 2005–2012): First foreign boss of a major Japanese electronics firm. He cut costs, tried to refocus, and even posted record profit in 2008 before the global crisis swamped electronics. The durable turnaround came under Hirai/Yoshida.
Net: painful restructuring laid groundwork but didn’t finish the job.
Olympus (Michael Woodford, UK; 2011) & (Stefan Kaufmann, Germany; 2024–2025): Woodford exposed a ¥100bn+ scandal and was ejected — then vindicated. More recently Kaufmann’s forced exit for alleged misconduct shows how fragile these appointments can be.
Net: governance shock therapy, not a long-run operating story.
Seven & i / 7-Eleven (Stephen Dacus, U.S.; appointed 2025): First foreign CEO, installed amid a mega takeover threat. Aggressive portfolio pruning and buybacks signal a shareholder-first era. Early days, but the intent is clear.
What patterns actually drive success?
From these cases (and Nissan’s data), three conditions repeat:
A burning platform. Foreign CEOs do best when debt, margins, or competition force a real mandate. Ghosn had one; Dacus clearly does. Without urgency, “globalization” turns into cosmetic English mottos.
Board cover + governance clarity. The job fails when the board wants change without conflict. Olympus and (post-2018) Nissan show what happens when internal politics overwhelm the mission.
A global operating system. Takeda’s Weber installed a cross-border M&A and pipeline machine; Kameda’s Juneja is doing similar in snacks. The KPI is not slogans — it’s mix shift to geographies/products with pricing power.
So… should Japan hire more foreign CEOs?
If we judge by operating results under hard mandates, yes. The best foreign chiefs do exactly what Japanese boards privately say they need: they re-cut portfolios, professionalize capital allocation, and force export-grade discipline. The fear is culture clash. The bigger fear should be global irrelevance.
Here’s my shortlist; not to provoke, but because the numbers + strategy gaps justify outside oxygen:
Conglomerate retailers and F&B franchisors still juggling legacy formats: they need portfolio surgery, franchising economics, and U.S. capital-markets fluency. (Seven & i just jumped first.)
Electronics names with decent tech but weak brand monetization (think TV/white goods holdouts): hire someone who treats brand as an asset class and exits subscale lines fast, the lesson Sony learned the hard way.
Tier-2 auto suppliers facing EV margin compression without scale: bring in a chief who can buy/sell product lines and plug into Western OEM programs, not just chase cost-downs.
Regional logistics/rail-adjacent infrastructure operators eyeing tourism and real-estate yield: global REIT/infra chops matter more than hometown seniority.
Objections i hear — and my answers
“But culture!” Sure — so give the CEO board-level political air cover and a clear three-year scorecard (debt, margin, ROIC). Culture follows cash flow.
“What about scandals?” Scandals are governance failures, not passports. If anything, foreign CEOs have exposed rot (Woodford), not caused it. ft.com
“Can’t a Japanese leader do this?” Of course. But boards that won’t empower internal reformers sometimes need an outsider to break taboos with less social cost.
The bottom line
Japan doesn’t “need” foreign CEOs because foreign is better. It needs them when entrenched habits block obvious fixes: Simplify the portfolio, focus on profitable niches, use the balance sheet like a tool, and measure success in ROIC, not ceremony. Ghosn proved the operating model works (ethics caveats included). Juneja shows it doesn’t have to break the tea cups to modernize a beloved brand. And Seven & i tells us boards are finally willing to try again, with eyes open.
If we hire for mandate + metrics rather than passports, we’ll get what we pay for: growth that outlives the headline.
Interesting article, I’ve been thinking about this for a while actually but it’s nicely articulated here.
Nice!