The head of BenQ retained his chairmanship but will lose his CEO titles at some companies in the BenQ Group, amid a management reshuffle announced just weeks before his insider stock trading case begins in Taiwan.
K.Y. Lee, the long-standing chairman of the company and head of the BenQ Group, lost his CEO title at LCD (liquid crystal display) panel maker AU Optronics, and at BenQ Corp, an official confirmed today.
The announcement comes less than a year after BenQ racked up over $1bn in losses in a high-risk attempt to build a global name in the mobile phone business. The company opened BenQ Mobile GmbH & Co OHG in October 2005 after taking on Siemens AG's mobile phone unit. But a year later, BenQ called it quits amid stiff competition and heavy losses. Since then, its management has faced blame for betting the company on what turned out to be a losing strategy.
Financially, the company posted losses in every quarter after the handset unit acquisition, and its bottom line continues to bleed.
The current management reshuffle, and the announcement of a new name for BenQ Corp, comes just weeks before court proceedings are set to begin on the insider stock trading case at the Taoyuan District Court in Taiwan. Officials said procedural meetings are slated to begin July 12.