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[Alpha Biz=(Chicago) Reporter Kim Jisun] Kim Tae-hyun, chairman of the National Pension Service, said the process of electing POSCO Group's next chairman needs to be improved.
"The appointment of CEO of POSCO Holdings, an ownership distribution company, should be given fair opportunities without discrimination between insiders and outsiders to maximize shareholder interests, as said in the KT case," Chairman Kim said in a telephone interview with the Dong-A Ilbo on the 28th.
Chairman Kim added, "The process of appointing a chairman should be made public in accordance with fair and transparent standards and procedures."
POSCO Holdings, the holding company of POSCO Group, held an extraordinary board meeting on the 21st and began the process of appointing a chairman of the CEO Candidate Recommendation Committee. It abolished the "self-reappointment system" of the incumbent chairman and launched the committee to enhance transparency in the process of selecting the chairman. However, six out of seven outside directors who make up the committee were appointed when Choi Jung-woo was in office, sparking controversy over fairness.
Under the plan to improve POSCO Holdings' governance structure, which was changed by a board resolution on the 19th, the committee will automatically operate regardless of the intention of the incumbent chairman 90 days before the expiration of the POSCO Group chairman's term. The committee is responsible for the overall process of selecting the next chairman, including the selection of early candidates (long list). Seven outside directors of POSCO Holdings were appointed or extended during Choi's term.
The recommendation committee is expected to select a "final list" that narrows the number of candidates to around five by February next year, reflecting the evaluation opinion of the "presidential candidate selection advisory group" composed of outside figures. At this time, the list of candidates for the next president will be announced for the first time. As the list has not been disclosed which candidates are included in the long list and the short list (selection of the first group of candidates, as early as the end of January) before the final list, there is no way to officially confirm whether Choi will seek a second term for more than a month. After the final list is announced, the committee selects one final candidate through an in-depth interview and recommends it to the board of directors. The next chairman will then be finalized at a shareholders' meeting in March.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
