Samsung nominates CFO as next chairman
SEOUL: Samsung Electronics Co recommended Lee Sang-hoon as its next board chairman and announced changes at the top of its three main divisions in a major revamp of its executive ranks.
Lee will leave the role of chief financial officer to become chairman, the first time the company has split the chairman and chief executive officer duties, Samsung said in a statement yesterday. South Korea’s biggest company announced the changes just hours after detailing a boost to shareholder payouts and record earnings.
Samsung is bringing in new leadership as it continues to rebound from scandal thanks to smartphones and surging demand for its components, including the screen used in Apple Inc’s marquee iPhone X. The executive changes come as de facto chief Jay Y. Lee appeals his prison sentence for corruption and patriarch Lee Kun-hee remains hospitalised.
The company will retain its three CEO structure for the business units. Kim Ki-nam will succeed Kwon Oh-Hyun as head of the display and semiconductor division, Kim Hyun-suk will replace Yoon Boo-Keun at consumer electronics and DJ Koh will take the place of JK Shin at the helm of mobile phones. Shin and Yoon offered to resign while Kwon earlier this month announced his retirement.
The Suwon, South Korea-based company said it will double annual dividends to 9.6 trillion won (US$8.5bil) in the next three years with 2017 capital spending to reach 46.2 trillion won.
Samsung is setting aside 50% of its free cash flow for shareholder returns. After the dividends, the company said it may use any remaining portion of that money for share buybacks “as deemed appropriate.”
Net income rose to 11.04 trillion won in the three months ended September, the company said yesterday in a filing.
That compares with the 10.8 trillion won average of estimates compiled by Bloomberg. Operating profit was 14.5 trillion won on sales of 62 trillion.
Investments in chips and displays has helped Samsung capitalise on the rally in semiconductor prices and demand from rivals for smartphones using organic light-emitting diodes.
A surge in global chip prices has bolstered the company, with its semiconductor division posting operating income for the quarter of 9.96 trillion won.