An accounting scandal of more than $1.2bn claimed its ninth executive at Toshiba while the company’s remaining chairman and senior officials were slapped with a pay cut of more than 40 per cent.

The additional penalties came after an outside panel found the Japanese industrial giant to have inflated profits over a seven-year period, leading to the resignation of half of its 16-member board including Hisao Tanaka, former chief executive, and Norio Sasaki, former vice-chairman.

Toshiba on Wednesday set up a new six-member panel composed of the company’s external directors and outside legal and accounting experts, tasked with appointing the company’s new management team and compiling governance measures. Yoshimitsu Kobayashi, chairman of Mitsubishi Chemical Holdings, will also act as the panel’s observer.