Posco strives for transparent CEO nomination process

South Korean steel giant Posco appears to be taking a cautious approach in selecting its new CEO amid reports questioning the political neutrality of the formerly state-run enterprise.

The firm’s council, consisting of five outside board members, picked 11 candidates from 21, in its sixth round of meetings, the company said Wednesday. The list of candidates was not disclosed. The council will interview five candidates at the next meeting, before selecting one finalist in June.

The CEO candidate must gain approval from the board as well as a shareholders meeting set to be held in July.

The council was first formed in 2014 to seek a successor for former Chairman Chung Jun-yang.

Incumbent Chairman Kwon Oh-joon was selected through the council’s screening. However, Kwon said he would step down from his post in a surprise announcement in April. Before tendering his resignation, Kwon had said he would seek growth engines for Posco as the steel giant celebrated its 50th anniversary on April 1.

Meanwhile, the council has faced criticism that its nomination process is not clear. Civic groups argue that the current council comprises members friendly to Kwon and that a change in its composition must precede the selection of a new CEO.

Refuting reports, the council said it selects candidates through fair and transparent methods and is not under political influence.


By Cho Chung-un (christory@heraldcorp.com)