A total of 398 executives at listed companies affiliated with Samsung, SK, Hyundai Motor and LG held shares worth more than 1 billion won ($720,000) as of Aug. 24, according to a report released Monday by corporate analysis firm Korea CXO Research Institute. Their combined holdings were valued at 1.05 trillion won.
Samsung Electronics accounted for 256 of the 398 executives, or 64.3 percent of the total, while SK hynix had 107, or 26.9 percent. Together, the two chipmakers accounted for 363 executives. That was 91.2 percent of those with shareholdings worth more than 1 billion won.
The gap was even wider by group. Samsung affiliates had 269 executives above the threshold and SK had 122, meaning the two conglomerates together represented 98.2 percent of the total. Hyundai Motor Group had just four, while LG had three.
The research institute attributed much of the gap to differences in compensation practices. Samsung Electronics and SK hynix have increasingly paid part of employee and executive performance bonuses in company shares, helping executives build larger holdings.
The impact was clear over the past three months. The number of Samsung Electronics executives with holdings worth more than 1 billion won jumped 50.6 percent to 256 from 170 on May 13. At SK hynix, the figure rose 21.6 percent to 107 from 88.
Combined, the number rose 40.7 percent even as share prices fell over the same period. Samsung Electronics shares dropped 9.5 percent and SK hynix fell 15.4 percent.
At the top of the list, 12 executives held company shares worth at least 10 billion won. Six were from Samsung, five from SK and one from Hyundai Motor Group, while none came from LG.
Samsung Electronics President Roh Tae-moon topped the list with 124,280 shares valued at about 31.94 billion won based on the company's Aug. 24 closing price of 257,000 won. He was the only executive outside the controlling families of the four groups with more than 30 billion won in company shares.
SK hynix President Kwak Noh-jung ranked second with holdings worth 23.92 billion won. SK Square Chief Investment Officer Song Jason followed with 18.31 billion won. Samsung Electronics President Park Hak-kyu held 18.08 billion won, while Hyundai AutoEver executive Suh Dong-kwon had 16.55 billion won.
The institute examined 62 listed affiliates of the four groups and calculated the value of common shares held by executives named in their first-half regulatory filings using Aug. 24 closing prices.
AJP Takeaways
• Samsung Electronics and SK hynix executives account for 91.2 percent of executives outside the controlling families at South Korea’s four biggest groups with company shares worth more than 1 billion won.
• Their numbers rose 40.7 percent over three months even as both chipmakers’ share prices fell, pointing to the effect of stock-based compensation.
• Samsung Electronics President Roh Tae-moon topped the ranking with holdings worth about 31.94 billion won.
Copyright ⓒ Aju Press All rights reserved.
