Samsung to increase dividends, review corporate structure

Samsung to increase dividends, review corporate structure

The company has also pledged to boost its 2016 dividend by 30 per cent compared to previous year, bringing the annual dividend to four trillion won; a 36 per cent rise in 2016 dividends per share, to 28,500 per won. Please click the button below to manage your account.

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Samsung Electronics Co Ltd (NASDAQ:SSNLF) is instituting several important changes as calls from multiple parties are pushing for the company to part with more of its growing cash pile, restructure its governance, and appoint more diverse board members. It said it is seeking to add at least one new board member with CEO experience before its annual meeting in March 2017.

Samsung's remarks come after USA activist hedge fund Elliott Management proposed in October the firm split itself into a holding vehicle for ownership purposes and an operating company.

Just as the chaebol extinguished one fire - the exploding Galaxy Note 7 recall - yet another has ripped through the boardroom with Elliott, which owns a 0.6 per cent stake, agitating for higher shareholder dividends.

The move came as South Korean president Park Geun-hye stood on the brink of resignation after an influence-peddling scandal which has engulfed Samsung and Hyundai.

Overall, 2016 hasn't been the greatest year for Samsung stock. The company since has not updated the public on its investigation results.

Despite the announcement, Samsung offered little detail on the potential restructuring and said it was "absolutely neutral" about whether to proceed. For example, through splitting the Lee Family would be able to integrate themselves more into the business, therefore improving shareholder value, as well as market grip. Subsequently, investors have voiced out their considerations about the company.

The split would allow the Lee family to maintain their control over the company, with de facto leader of the group Jay Y Lee having taken over from his father, who had a heart attack in 2014.