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[Alpha Biz=(Chicago) Reporter Kim Jisun] It has been confirmed that Dongyang Life Insurance was investigated by financial authorities after it was found to have raised the expenses of its CEO Zhou Guodan without proper grounds.
According to EDAILY on the 2nd, the Financial Supervisory Service investigated the unfair increase in expenses of Zhou Guodan during the recent on-site investigation of Dongyang Life Insurance. The Financial Supervisory Service is said to have pointed out that there is no clear basis for calculating Zhou Guodan's increase in expenses and housing support.
Last year, Dongyang Life Insurance raised the limit of housing support for representatives of Jou and Gwo-Duan by 4 million won from 10 million won per month to 14 million won. The budget also doubled from 2 million won to 4 million won, respectively.
The problem is that it leaves no objective basis for the increase in expenses. The increase in the "expenses" budget of the representatives and other executives does not go through the approval process of the general shareholders' meeting, unlike the "remuneration (salary, performance, severance pay, etc.)." However, it is common for budget-related departments such as management and general affairs teams to leave objective grounds within insurance companies.
If there is no proper basis or standard, there is room for the influence of a representative individual or a certain executive to work strongly. In fact, most insurers leave details and evidence after consultation on the internal system when the purpose of expenses is changed from A to B or when the expenses of item C change.
In the same vein, financial authorities also focus on the use of expenses by executives, including representatives, when investigating financial companies.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
