Samsung Electro-Mechanics Forms Compensation Committee Entirely of Outside Directors to Enhance Objectivity and Transparency

Samsung Electro-Mechanics is holding an online board of directors meeting on the 10th.

[Asia Economy Reporter Ki-min Lee] Samsung Electro-Mechanics announced on the 11th that it held a regular board meeting on the 10th of this month and decided to compose the Compensation Committee entirely of outside directors.

At the regular board meeting, Samsung Electro-Mechanics approved amendments to the Compensation Committee regulations, appointed committee members, and approved retirement pension insurance transactions with related party Samsung Life Insurance.

As a result, the Compensation Committee, which previously consisted of one inside director and two outside directors, is now composed entirely of four outside directors. The existing outside directors, Professor Jun-kyung Kim of the Korea Development Institute (KDI) Graduate School of International Studies and Professor Yoon-kyung Yeo of Ewha Womans University’s Department of Business Administration, were newly appointed as Compensation Committee members.

The Compensation Committee is responsible for reviewing the approval of the remuneration limits for registered directors. Through this amendment, Samsung Electro-Mechanics explained that it has strengthened the objectivity and transparency of the director remuneration decision process. Samsung Electro-Mechanics also added that it has enhanced the independence of the board by composing all subcommittees, except the Management Committee, entirely of outside directors.

Among Samsung affiliates, companies that have composed all subcommittees except the Management Committee entirely of outside directors include Samsung Electronics and Samsung C&T Corporation, while companies that have composed the entire Compensation Committee of outside directors include Samsung Electronics, Samsung C&T Corporation, Samsung SDS, and Samsung Engineering.

Samsung Electro-Mechanics was the first non-financial Samsung affiliate to appoint an outside director as the chairperson of the board in 2016. Currently, outside director Yong-gyun Kim serves as the chairperson.

This board meeting was the first to be held online in an ontact (non-face-to-face) format as part of social distancing measures related to the novel coronavirus disease (COVID-19).

President Kye Gye-hyun of Samsung Electro-Mechanics, Executive Vice President Bong-yong Kang of the Management Support Office, and all inside and outside directors participated online from their respective offices and conducted the board meeting via video conference.