Shareholders grumpy at Samsung dividends

Eleven subsidiaries of Samsung Group, Korea’s largest conglomerate, held relatively peaceful shareholders’ meetings yesterday, despite grumbles about dividends. Samsung Electronics reappointed Lee Kun-hee as group chairman, Yun Jong-yong as vice chairman, and Lee Yoon-woo and Choi Doh-seok as presidents. The gap left by former president Chin Dae-je, nominated as the new Minister of Information and Communication, was not filled. Caps on total remuneration for company executives were set, varying greatly depending on different company performances. Even firms that prospered last year, such as Samsung Electronics, the world’s largest memory chipmaker, and Samsung SDI, a display device company, froze their payouts to executives this year. Samsung Electronics posted a record 7.1 trillion won ($5.9 billion) in net profits on 40.5 trillion won in revenue last year. But the company maintained its cap of 50 billion won for total executive wages and benefits after shareholders warned that raising the figure would be resisted. Seven Samsung Electronics executives were paid an average 5.2 billion won each last year. Samsung SDI, which also reported a record performance, capped its total executive remuneration at 10 billion won. Samsung Electro-Mechanics, Samsung Heavy Industries Co., and S1 Corp., a security firm, raised their total packages to between 3.8 billion won and 5.9 billion won. At Samsung Electronics’ meeting, some small shareholders fiercely rejected their dividend payout of 5,500 won per share. “I object to the 375 billion won paid to Samsung staffers as special bonuses last year,” one shareholder said, demanding a raise in dividend. Samsung Electronics shares closed down 4,000 won yesterday, to 279,500 won. “There were many complaints about dividends, so we will promote the interests of shareholders this year through stock buybacks,” the vice chairman, Mr Yun, said. by Kim Jong-yoon