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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Ahead of Samsung Electronics' shareholder meeting, the National Pension Service (NPS) has announced its opposition to several proposals, including the appointment of Vice Chairman Jeon Young-hyun as an internal director, the nomination of Heo Eun-nyoung as an independent director, and the approval of the directors' compensation cap.
On Friday, the NPS Fund Management Headquarters stated that it will vote against the proposal to appoint Jeon Young-hyun, head of Samsung Electronics' Semiconductor (DS) Division, as a new internal director.
The NPS cited concerns over previous instances of damage to corporate value and shareholder rights infringement, particularly pointing to Jeon’s involvement in controversial actions during his time at Samsung SDI, where he allegedly directed company contracts in a way unfavorable to the company, particularly towards the affiliate Samsung Welstory.
Regarding Heo Eun-nyoung, the NPS argued that her appointment as an independent director could compromise her independence due to potential conflicts of interest arising from prior ties to the company. Additionally, the NPS expressed concerns over the excessive compensation proposed for directors, which it deemed disproportionate to the company's performance.
As of the end of 2023, the National Pension Service holds 433,041,739 shares of Samsung Electronics, accounting for a 7.25% stake in the company.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
