Enhancing Shareholder Value Through Responsible Management
CEOs of EcoPro listed companies will receive 30% of their salaries in company shares starting this year. This reflects the strong determination of the CEOs to turn profitable through improved profitability.
On the 18th, EcoPro announced that four listed companies, including the holding company EcoPro, EcoPro BM, EcoPro HN, and EcoPro Materials, will introduce a system where part of the CEO's annual salary is paid in shares. Accordingly, the CEOs of the four listed EcoPro companies will receive 30% of their contracted annual salary in company shares this year.
The CEOs recently agreed in a management meeting that they deeply feel responsible for the stock price decline caused by performance deterioration due to the electric vehicle chasm (temporary demand stagnation) and resolved to break even by 2025 to meet market expectations. As a symbolic measure for this, they reportedly conveyed their intention to receive part of their salary in shares to the company.
The CEOs of the four listed companies will receive only 70% of their salary as monthly pay and will receive 30% of their salary in shares around the end of the year. Since the actual wages the CEOs receive will decrease if the stock price falls, it is expected that they will actively work to improve profitability and turn profitable, taking responsible management to enhance shareholder value.
Previously, EcoPro distributed company shares to all employees based on the management philosophy of founder Dong-chae Lee, who believed that the fruits of growth should be shared with employees. A representative example is the decision made at the board meeting in October 2022 to grant restricted stock units (RSUs) to all employees. Employee RSUs were set at about 15-20% of their annual salary, comprehensively considering rank, years of service, and salary. Half of the promised shares, 146,505 shares, were delivered in October last year, and the remaining shares are scheduled to be delivered in October this year.
Song Ho-jun, CEO of EcoPro, said, “This year, the CEOs have a strong determination to meet market expectations by turning profitable,” adding, “Receiving part of the salary in shares is a symbolic measure for this.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
