Samsung cancels $3.3b of its own shares, appoints new board members
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The news: Electronics giant Samsung will cancel 3.05 trillion won ($3.32 billion) worth of its own common shares that it had previously acquired.
The numbers: A Samsung regulatory filing says that the company will also purchase 2.7 trillion won worth of its own common shares, in addition to 304 billion won worth of other shares. Both purchases are scheduled to occur between 19 February and 16 May this year.
The context: The decision is in line with the board resolution of November last year to buy back shares worth 10 trillion over the next 12 months, aiming to improve shareholder value and conduct employee stock-based compensation with the moves.
The filing says that a portion of the repurchased shares, worth approximately 500 billion won, will be allocated to a stock-based compensation program for executives. Under the program, stock-based compensation will constitute 50% or more of the 2024 Overall Performance Incentive.
Samsung also announced that Jun Young-hyun, the head of its chip business, and chief technology officer Song Jai-hyuk have been appointed as board members. Professor Lee Hyuk-jae of Seoul National University was also nominated as an outside director.
