Seo Jeong-jin Appears via Video Call During US Business Trip
Jimpenetra Sales Effort "Will Visit All 2,800 US Hospitals"
Seo Jin-seok Shows Stable Management Despite Shareholder Opposition
Seo Jin-seok, CEO of Celltrion who was appointed as co-CEO last year in place of Seo Jung-jin, Chairman of Celltrion Group currently on a business trip to the United States, led the regular shareholders' meeting for the first time. Although there were some objections regarding the stock price decline and the excessive increase in the director remuneration limit, CEO Seo concluded the meeting with stable management amid Chairman Seo's surprise appearance.
At the Celltrion regular shareholders' meeting held on the 26th at Songdo Convensia in Incheon, Seo Jung-jin, Chairman of the Celltrion Group (on screen), is speaking via video call. In front is Seo Jin-seok, CEO of Celltrion. [Photo by Lee Chun-hee]
On the 26th, Celltrion held its 33rd regular shareholders' meeting at Songdo Convensia in Incheon. From the beginning of the meeting, shareholders strongly protested over the stock price decline and other issues.
One particular issue at the meeting was the remuneration of key executives. A minority shareholder demanded, "The company is experiencing negative growth and shareholders are struggling, yet executives received performance bonuses," and requested an explanation.
Moreover, the agenda to raise the total remuneration limit for directors from 9 billion KRW last year to over 20 billion KRW this year more than doubled, intensifying the controversy. One of the major shareholders, the National Pension Service (5.27%), had already expressed opposition, stating that "the remuneration limit is excessive compared to the remuneration amount, or the limit and amount are excessive in light of business performance."
The company explained that the increase in the limit was unavoidable due to the merger of Celltrion and Celltrion Healthcare last year. Shin Min-chul, Head of Celltrion's Management Division, stated, "The combined director remuneration for both companies last year was 11.2 billion KRW, exceeding Celltrion's director remuneration last year, so an increase in the limit is necessary," adding, "Raising the limit does not mean an increase in current executives' remuneration, and we will maintain a very conservative operating standard." In response, shareholders requested that directors' remuneration be capped at 12 billion KRW, and CEO Seo accepted, saying, "I will report on the performance and be evaluated again," and "This year, remuneration will be executed within the 12 billion KRW limit."
At the Celltrion regular shareholders' meeting held on the 26th at Songdo Convensia in Incheon, Seo Jin-seok, CEO of Celltrion, is conducting the meeting. [Photo by Celltrion]
As these shareholder concerns continued, Chairman Seo, who was absent from the meeting, made a surprise appearance early on via video call. Chairman Seo is currently on a long-term business trip in the United States to promote Jimpenetra, which was launched there on the 15th (local time). However, given the COVID-19 pandemic situation and his retirement announcement, he has consistently expressed his opinions via phone connection during shareholders' meetings, so his appearance was somewhat anticipated.
Regarding his current status, Chairman Seo emphasized, "There are 2,800 hospitals using Jimpenetra in the U.S., and I am visiting all of them to introduce the product and increase sales," adding, "I am touring hospitals every two weeks and aiming to maximize initial sales of Jimpenetra by the end of June."
However, when Chairman Seo requested to temporarily postpone questions from shareholders to ensure the smooth progress of the meeting, strong protests arose demanding that he listen to their opinions. CEO Seo calmed the situation, repeatedly saying, "I will show you through actions" and "Please trust us." Regarding shareholder returns, he emphasized multiple times, "We have repurchased over 1 trillion KRW worth of treasury shares and canceled nearly 500 billion KRW," and "We have clearly demonstrated this through actions and will keep our promises to shareholders."
Under CEO Seo's stable management, all agenda items presented at the meeting?including ▲approval of financial statements ▲amendments to the articles of incorporation ▲appointment of directors ▲appointment of auditors ▲approval of director remuneration limits?were passed.
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