Stock Option System for Management of Companies Under Court Protection

A stock option system for the management of companies in receivership or under court-appointed control will be introduced as well as the appointment of professional managers to the management team. The Seoul District Judicial Office on May 4 announced that it will induce this new system for auditing companies operating under court protection. According to the court's suggestion, the superintendent is to receive a special bonus and various incentives, such as stock options, in addition to regular wages for a successful corporate turnaround. The special incentive for a manager will be limited to 20,000 stocks, with a value of 4 dollars per share.
Moreover, there will be several professional administrators recruited as supervisors of managing members.
In principle, only one person will be designated as manager for a two-year term.
The court stressed that former owners of insolvent companies will not be selected for the position.
Hwashik Bong : trojans@joongang.co.kr