Samsung Considers Steps In Keep The Ruling Family Stay In Control Of The Company
It was not planned or predicted how this would work for the benefit of the company but analysts believe that this move will grant full control to anyone. Lee Jae-yong vice chairman and son of chairman Lee Kun-hee with sisters Lee Boo-jin and Lee Seo-hyun, are the people who played crucial roles in the company and holding a strong grip on the International Market.
The board of Directors is looking for independent members with international corporate experience and nominees are expected to come in by March 2017 as the possible shift may take effect in about six month's time.
Although things are getting shaky in the company, shareholders may still be in high spirit and confidence that matters will be settled properly. Also the company is promising 50 percent of their cash flow for 2016-2017 will go directly to investors return, and share dividends will jump to 30 percent this year. The company will start paying quarterly dividends by April 2017.
According to Samsung Newsroom the company is facing the same problem that Apple has faced before. Investors seem to disagree that the company is hoarding money amounting to around USD 70.3 Billion as of the third quarter of 2016. The said amount will not be spent creating or launching new gadgets. Giving out that money can lead to losing the company's shareholders and might result in jumping into new ship.
Samsung officially announced their commitment to enhance sustainable and long-term value of their share holders.
The 30 percent increase of dividends will result into an annual dividend amount to 4 trillion won.
Moreover the company will pay a special dividend of 30 trillion won (USD 25.6 billion) which is equivalent to 245,000 won per share.
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!