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| SK Group Chairman Chey Tae-won / Courtesy of SK Group |
By Kim Hyun-bin
SK Holdings’ board of directors made an unprecedented move whereby the majority of directors voted in favor of passing an agenda, despite opposition from SK Group Chairman Chey Tae-won. Some industry watchers believe that the move demonstrates the willingness of the family-owned conglomerate to entrust professional managers with key decisions.
According to the Financial Supervisory Service’s electronic notice system, Chairman Chey attended the SK Holdings board meeting last month and opposed additional investments in a specific project. However, three in-house directors and four outside directors voted in favor of the agenda item.
Industry watchers say that it is unprecedented for inside directors and outside directors to go against a group chairperson’s stance, especially in a majority vote where the decision was mostly pre-arranged. Many believe that SK is heading in the right direction, with the directors voicing their own opinions while even going against the will of conglomerate’s owner.
Chairman Chey is the largest shareholder who owns 8.44 percent of SK Holdings and serves as an in-house director on the board, after stepping down from the committee’s chair post in 2019.SK Group is seen as a leading conglomerate in terms of its environment, social, governance (ESG) efforts. Most companies have been focusing on the environment and social sectors, but SK Group has been working to enhance its internal governance structure as well.“We have been working to build a board of independent directors, consisting of experts, to prevent the head of the conglomerate from singlehandedly pushing forward agendas instead of thoroughly discussing the issues with the board,” an SK Holdings representative said. “We have been fully supportive and continue to do so to strengthen the role of the board in order to reach a level of premium corporate governance.”
Kumho Petrochemical is another conglomerate considered as a role model for its efforts to enhance its corporate governance. Kumho Petrochemical Chairman Park Chan-koo stepped down as the company’s CEO while the company transitioned into a management specialist-led corporate governance structure that instead strengthened the board of directors’ role.
SK Holdings’ board passes agenda item despite opposition from chairman
Source: Buhay Kapa PH
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