Reappointment of the board despite opposition to ISS…

[이데일리 전선형 기자] There was no surprise. Despite the opposition from the global advisory agency ISS and the National Pension Service, financial holdings passed the agenda for reappointment of the board of directors and concluded the general shareholders’ meeting without difficulty. Despite the bad news of Corona 19, earnings are growing steadily, and it seems that it has not been effective due to a large number of friendly shares.

Appointment of the board passed without difficulty

According to the financial sector on the 26th, KB, Woori, and Hana Financial Group held a general shareholders’ meeting at 10 am on the day. Shinhan Financial Group held a general shareholders’ meeting on the previous day (25th).

Shinhan Financial Group Chairman Cho Yong-byung is speaking at the regular shareholders’ meeting held at the Shinhan Financial Headquarters on the morning of the 25th. (Photo = Shinhan Financial Group)

First, Shinhan Finance passed the agenda for re-appointment of Shinhan Bank President Jin Ok-dong, who was re-recommended as other non-executive directors on the previous day, and six outside directors (Park An-soon, Byeon Yang-ho, Sung Jae-ho, Lee Yun-jae, Choi Gyeong-rok, and Huh Yong-hak) re-appointment at the shareholders’ meeting the previous day. Made it. The agenda for the appointment of new outside directors such as Bae Hoon, Kwak Soo-geun, Lee Yong-guk, and Choi Jae-bung was also approved.

Earlier, the ISS was agitated when it made a bunch of recommendations against the appointment of an outside director of Shinhan Financial Group. The reason for ISS is that Jin was notified of a censure warning from the Financial Supervisory Service regarding the sale of Lime Fund, and that Jin and the rest of the outside directors failed to properly check Shinhan Finance Chairman Cho Yong-byung, who was convicted for being involved in hiring corruption last year. All. The Korea Corporate Governance Service, the nation’s largest voting advisory firm, also disagreed for similar reasons. However, when I opened the lid of the main gun, it did not give much influence. In particular, Jin was elected as a director with 75.9% of the stocks in attendance.

Woori Financial Group also held a regular shareholders’ meeting and reappointed five outside directors, including Noh Sung-tae, Park Sang-yong, Jeong Chan-hyung, Jeon Ji-pyeong, Jang Dong-woo, and Lee Won-deok, among the six outside directors.

About the appointment of the board of directors of Woori Finance, ISS and the Korea Corporate Governance Service expressed their opposition. In particular, the National Pension Fund, which is the second largest shareholder, contributed to the appointment of outside directors except for the internal director Lee Won-deok by giving opposite voting rights to the National Pension Fund. This is because the corporate value has been damaged in connection with the incomplete sale of derivatives-linked products (DLF). However, at the shareholders’ meeting, their opinions did not work.

KB Financial Group and Hana Financial Group reappointed the board of directors without any objections. KB Finance passed the re-appointment of five outside directors, including Seok-ho Seon, Stuart Solomon, Myung-hee Choi, Koo-hwan Jeong, and Kyung-ho Kim, at the shareholders’ meeting on the same day. Hana Financial Group elected candidates Park Won-gu, Kim Hong-jin, Yang Dong-hoon, Heo Yun, Lee Jung-won, Kwon Sook-kyo, and Park Dong-moon as outside directors at the shareholders’ meeting. In particular, on this day, Hana Financial Group officially confirmed that Kim Jong-tae, chairman of Hana Holdings, will remain in office for one year.

Prayer to appease shareholders with a willingness to dividend

Financial holdings bowed their heads and apologized to shareholders for the dividend payout ratio that had decreased to 20% in this shareholding. However, it showed a willingness to’actively review mid-term and quarterly dividends’ to enhance shareholder value. Earlier, financial holdings reduced their dividend payout ratio to a level of 20%, recommending that the financial authorities’lower dividend payouts to financial holdings and banks due to uncertainties caused by Corona 19′.

Shinhan Holdings also decided on an agenda to change the articles of incorporation to prepare the basis for quarterly dividends at the shareholders’ meeting. Previously, dividends that were only available up to two times a year were changed to be up to four times a year. In addition, Shinhan Financial Group is reviewing active shareholder return policies such as the cancellation of treasury shares along with quarterly dividends.

Woori Finance also passed the agenda of’reducing capital reserves’ at the shareholders’ meeting. This is a measure to expand dividendable income of about 4 trillion won by transferring capital reserves (capital surplus based on separate financial statements) into retained earnings.

Jongkyu Yoon, Chairman of KB Financial Group. (Photo = KB Financial Group)

KB Finance has already expressed its willingness to pay dividends as interim and quarterly dividends are already allowed in the articles of association. Yoon Jong-gyu, chairman of KB Financial Group, said at the shareholders’ general meeting, “I feel the need to supply mid-term and quarterly dividends so that it can be a stable cash-flow for shareholders who expect financial stocks as dividend stocks. Hana Financial Group also showed a willingness to continue to increase shareholder value, including interim dividends and ending dividends.