JB Financial rejects proposal to increase dividend payout ratio

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JB Financial rejects proposal to increase dividend payout ratio

Published: 09 Mar. 2023, 18:07

JB Financial Group headquarters in Jeonju, North Jeolla [JB FINANCIAL GROUP]

JB Financial Group's board rejected shareholder proposals from its second largest shareholder, including an increase of the dividend payout ratio.

“Excessive growth in dividend payout ratio could hurt corporate value in a long term and shareholder profit,” it said on Thursday following the company's annual general meeting, which was held on Feb. 28.

The rejection was in response to an Align Partners Capital Management shareholder proposal to raise the annual dividend payout ratio to 33 percent from the board's proposed 27 percent.

Align Partners is the second largest shareholder of the company, with 14.04 percent of the stock.

JB Financial Group also declined to appoint an outside director proposed by the fund.

The company said the person recommended has neither been sufficiently vetted nor went through a selection process.

BY JIN MIN-JI [jin.minji@joongang.co.kr]