On January 9th, POSCO CEO Ohjoon Kwon announced his intention to continue serving as CEO. POSCO’s board of directors assembled a committee consisting of six directors in order to conduct a review. Members analyzed Kwon’s performance through a series of interviews with various stakeholders inside and outside the company, including investors, employee representatives, and former CEOs. As part of the review, Kwon also presented his future plans and strategies to address the changing tides of the industry.
During the review, committee members took note of how Kwon strengthened the company’s corporate structure which he initiated through extensive restructuring, increased the company’s profitability and gave the Korean steel industry a more competitive edge. In fact, from 2013-2014, POSCO’s operating profit increased by 19% from KRW 2.6 trillion won to KRW2.2 trillion won – while its operating margin also improved from 7.3% to 10.8%.
Kwon also received positive remarks for the company’s record-low debt ratio of 17.4% as of the end of last year, the highest volume of global premium products, the successful restructuring of 126 affiliates, and a 55% rise in the company’s stock price.
The committee made recommendations for continued success, which included reforming the company’s non-steel businesses, fostering the growth of junior executives, and breathing new life into the manager training process – all of which Kwon vowed to carry out in his next term.
At the end of the extensive review, it was unanimously decided that Kwon remains as CEO for the next 3-year term. He will be re-elected on March 10 after a general meeting with shareholders and a resolution of the board of directors.
Don’t miss any of the exciting stories from The Steel Wire – subscribe via email today.