Full-scale Reduction of Total Executives Underway
'Innovation Amid Stability' in Focus
[Asia Economy Reporter Han Ye-ju] Samsung Electronics is scheduled to announce its executive personnel changes next week and has informed the executives subject to retirement about the matter.
According to business circles on the 2nd, Samsung Electronics notified dozens of executives who are set to retire about the personnel changes. It is reported that more than ten vice presidents in the Semiconductor (DS) division received notices that their contracts would not be renewed. One Samsung Electronics executive even sent messages to acquaintances saying that today was their last day at work.
Since the integration of the vice president and senior vice president ranks in last year's year-end personnel changes, expectations are growing that from this year, the number of directors eligible for promotion to senior vice president or senior vice president-level executives will begin to decrease.
Samsung Electronics' recent move toward tight management amid a complex crisis is also cited as a reason for this trend. While overall employee hiring is increasing, the scale of retiring executives is expected to gradually expand starting this year.
Samsung typically announces its president-level and subsequent executive personnel changes in December, followed by the new management holding a global strategy meeting. The business community expects this personnel change to be carried out based on the fundamental principle of meritocracy, with the keyword being "change within stability."
It is anticipated that the two-top CEO system, with Vice Chairman Han Jong-hee of the DX (Device Experience) division and President Kyung Kye-hyun of the DS (Semiconductor) division, will be maintained without major changes. This is because it is the first year of Chairman Lee Jae-yong's tenure and the business outlook is uncertain due to the economic downturn. Instead, there is a high possibility that young talents in their 30s and 40s, women, and external personnel will be dramatically appointed as new executives.
Following the president-level and other executive personnel changes, an organizational restructuring focused on change and innovation is also expected to follow.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
