Samsung CEOs study shareholder activism

[THE INVESTOR] Some 50 top Samsung Group executives on Sept. 28 attended a special lecture on the global trend of shareholder activism and policies to respond to investors’ growing demands.

The lecture was delivered by Goldman Sachs’ Korean chief Chung Hyoung-jin, following their weekly meeting held every Wednesday at the Seoul headquarters.

The lecture was reminiscent of the highly publicized proxy battle between Samsung and the US activist hedge fund Elliott Management last year on the then planned merger between Samsung C&T and Cheil Industries. 

The deal was approved by a majority of shareholders to set up a new entity, Samsung C&T, as a de facto holding company of the group in September. Since then, investors are pushing for corporate strategy changes and higher returns.

Samsung has also come up with more shareholder-friendly measures, including share buybacks and higher dividends. Industry watchers say the recent nomination of Samsung Electronics Vice Chairman Lee Jae-yong as a registered board member can also be seen as part of the efforts.

In the meantime, Goldman Sachs, the US investment bank, has maintained close ties with the nation’s largest conglomerate as it has advised on Samsung’s several big deals, including the Samsung C&T-Cheil Industries merger, in recent years.

By Lee Ji-yoon (jylee@heraldcorp.com)