KCGS comes out in support of Hyundai Motor over ElliottLocal proxy advisory firm Korea Corporate Governance Service (KCGS) offered its support for Hyundai Motor’s proposed outside directors and dividend payouts over the suggestions of Elliott Management in its report Wednesday, joining other advisory firms Daishin Economic Research Institute and Glass Lewis.
The local advisory firm fully backed Hyundai Motor’s choice of three outside directors, while disagreeing with all candidates selected by U.S. activist fund Elliott. The firm said Hyundai’s selection of outside directors seems more fitting to raise corporate value in the long term.
The advisory firm also rebuffed Elliott’s demand for a one-time payout of 4.5 trillion won ($3.98 billion), or 21,967 won per share from Hyundai Motor, saying that dividends must be paid out in a stable manner.
It also supported proposals made by Hyundai’s auto parts maker Hyundai Mobis over Elliott’s request.
Advisory firm ISS also backs Hyundai on dividends, but not on outside directors.
By Kim Jee-hee