Korean Air shareholders reject re-election of CEO Cho Yang-ho as director
- 5 years ago
At the Korean Air shareholders meeting this morning, shareholders voted against the airline's proposal to reappoint CEO Cho Yang-ho as director.
Our business correspondent Kim Hyesung is on the line.
Hyesung, so can you tell us more details on the news?
Ji-yoon, shareholders voted against extending Korean Air CEO Cho Yang-ho's term as director for another three years, ending his 27-year tenure on the board of the country’s biggest carrier.
A total of 64 percent of shareholders present at the meeting voted for the airline’s proposal, falling short of the two-thirds required for approval.
This result was somewhat expected.
It comes a day after the National Pension Service, the airline's second biggest shareholder with a near 12 percent of stake in the company, said it will vote against re-electing Cho... who is on trial on charges of embezzlement.
Cho holds around 33 percent of Korean Air's shares, and over 20 percent are held by foreign investors.
Korean civic groups and proxy adviser ISS had also recommended investors to vote against the reappointment of Cho, citing “sufficient evidence of egregious governance concerns.
I do wnat to point out however that today's shareholder vote shows growing shareholder activism in Korea.
It makes Cho Yang-ho the first founding family member of any South Korean chaebol to be forced off the board of directors.
He will no longer hold sway over management issues at the airline such as recommending directors and appointing CEOs.
But he can continue to keep his titles of chairman and CEO of the carrier for the time being.
That's all I have for now.
Back to you, Ji-yoon.
Our business correspondent Kim Hyesung is on the line.
Hyesung, so can you tell us more details on the news?
Ji-yoon, shareholders voted against extending Korean Air CEO Cho Yang-ho's term as director for another three years, ending his 27-year tenure on the board of the country’s biggest carrier.
A total of 64 percent of shareholders present at the meeting voted for the airline’s proposal, falling short of the two-thirds required for approval.
This result was somewhat expected.
It comes a day after the National Pension Service, the airline's second biggest shareholder with a near 12 percent of stake in the company, said it will vote against re-electing Cho... who is on trial on charges of embezzlement.
Cho holds around 33 percent of Korean Air's shares, and over 20 percent are held by foreign investors.
Korean civic groups and proxy adviser ISS had also recommended investors to vote against the reappointment of Cho, citing “sufficient evidence of egregious governance concerns.
I do wnat to point out however that today's shareholder vote shows growing shareholder activism in Korea.
It makes Cho Yang-ho the first founding family member of any South Korean chaebol to be forced off the board of directors.
He will no longer hold sway over management issues at the airline such as recommending directors and appointing CEOs.
But he can continue to keep his titles of chairman and CEO of the carrier for the time being.
That's all I have for now.
Back to you, Ji-yoon.