Korean Air's Cho Yang-ho rejected extended term as director of the board
- 5 years ago
조양호 회장, 국민연금 주주권 행사로 경영권 박탈… 재벌 총수로 '최초'
Now in a landmark vote on Wednesday , the CEO of South Korea's flag carrier,... Korean Air,... was rejected his extended term as director of the board at the country's flag carrier.
That's the first for the founding family member of any South Korean corporate giants dubbed "chaebol."
Our Choi Si-young has the story. 27 years since he first took over the board in 1992, Korean Air CEO Cho Yang-ho's reappointment as director of the board was rejected by shareholders.
A total of sixty-four percent of shareholders present at the meeting voted in support of his reelection, falling just short of the "two-thirds" required for approval under the firm's bylaws.
But the result was no surprise, as the National Pension Service,... the airline's second largest stakeholder,... declared a day earlier that it would not vote in favor of the motion to re-elect Cho as director.
South Korean civic groups and proxy adviser Institutional Shareholder Services had also recommended investors to vote against the reappointment of Cho, citing “sufficient evidence of egregious governance concerns."
Cho is on trial facing charges of embezzlement and tax evasion.
Experts point that the pension service rightfully exercised its shareholder's rights to suspend a director unfit to lead the board, but others differ,... saying his contributions to the firm so far should be taken into account when deciding to kick out the long-serving executive.
While the ousted Cho can no longer make major decisions as director of the board, he's not completely powerless as he's still Korean Air's largest shareholder.
Choi Si-young, Arirang News.
Now in a landmark vote on Wednesday , the CEO of South Korea's flag carrier,... Korean Air,... was rejected his extended term as director of the board at the country's flag carrier.
That's the first for the founding family member of any South Korean corporate giants dubbed "chaebol."
Our Choi Si-young has the story. 27 years since he first took over the board in 1992, Korean Air CEO Cho Yang-ho's reappointment as director of the board was rejected by shareholders.
A total of sixty-four percent of shareholders present at the meeting voted in support of his reelection, falling just short of the "two-thirds" required for approval under the firm's bylaws.
But the result was no surprise, as the National Pension Service,... the airline's second largest stakeholder,... declared a day earlier that it would not vote in favor of the motion to re-elect Cho as director.
South Korean civic groups and proxy adviser Institutional Shareholder Services had also recommended investors to vote against the reappointment of Cho, citing “sufficient evidence of egregious governance concerns."
Cho is on trial facing charges of embezzlement and tax evasion.
Experts point that the pension service rightfully exercised its shareholder's rights to suspend a director unfit to lead the board, but others differ,... saying his contributions to the firm so far should be taken into account when deciding to kick out the long-serving executive.
While the ousted Cho can no longer make major decisions as director of the board, he's not completely powerless as he's still Korean Air's largest shareholder.
Choi Si-young, Arirang News.