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Chaebol urged to ensure transparent succession

[THE INVESTOR] A listed company’s board of directors should draw up policies for leadership succession to improve transparency, the Corporate Governance Service said in new guidelines issued on Aug. 8.

In the guidelines, which are not binding, the CGS also said that institutional investors should exercise their voting rights more actively, and disclose their decisions in regulatory filings. 

Regarding succession of management, the CGS said that the BOD should establish “comprehensive and detailed” steps and training programs for executives.

The guidelines also call for the introduction of risk management policies, and for executives’ salaries to be disclosed.

By Choi He-suk (cheesuk@heraldcorp.com)

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