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Board of Directors recommended current CEO Kwon as the next CEO

Jan. 25, 2017
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  • - Unanimously chosen after a thorough review of business performance, vision, etc.
    - To be elected as CEO on Mar. 10 after a shareholder meeting and a board of directors meeting.

    POSCO's board of directors recommended current CEO Ohjoon Kwon as a candidate for the company's next CEO.


    After receiving on January 25th qualification review results from the CEO Candidate Recommendation Committee stating that current CEO Kwon is eligible to be a candidate for the next CEO, POSCO's board of directors decided to recommend at the upcoming shareholder meeting that current CEO Kwon as a candidate for the company's CEO, who will serve the next three years.


    On January 9th, CEO Kwon announced his intention to serve one more year, and in reaction to that, POSCO's board of directors formed a CEO Candidate Recommendation Committee comprising all of the company's six outside directors and has since been conducting a qualification review of CEO Kwon as the company's next CEO.


    Since its first meeting which took place on the 9th of last month, the CEO Candidate Recommendation Committee has conducted in-depth analysis and intense discussion at every meeting, which went on for more than four hours on average. The committee members were divided into three groups and thoroughly examined the performance and competency of CEO Kwon through interviews with various stakeholders inside and outside the company, including investors, employees' representatives, and former CEOs.


    In particular, the third meeting featured an event where CEO Kwon presented his future portfolio strategy in response to changes in the industry paradigm and personally answered each and every question of all members.


    Originally scheduled to take place in four installments, the meeting was extended to fifth and then sixth installments, and on January 25, just ahead of a meeting of the board of directors, a seventh meeting was held, which re-examined the various suspicions recently raised in the media. The CEO Candidate Recommendation Committee reached an agreement that the suspicions regarding CEO Kwon were unfounded and did not disqualify him from performing as the company's CEO, and the committee also consulted with external legal experts regarding the matter.


    In addition, the committee members evaluated CEO Kwon as having greatly contributed to improving the company's corporate structure through extensive restructuring after his inauguration, as well as improving the company's profitability and the competitiveness of the Korean steel industry itself. In fact, POSCO's operating profit increased by 19% to 2.6 trillion won at the end of last year from 2.2 trillion won in 2013, which was just before the CEO's inauguration, and its operating margin also recovered to a double-digit figure, from 7.3% to 10.8%.


    The CEO also received positive evaluations for the company's record-low debt ratio of 17.4% as of the end of last year and largest ever global sales volume of premium products, as well as 126 instances of restructuring after his inauguration, and a 55% rise in the company's stock price.


    Meanwhile, the CEO Candidate Recommendation Committee suggested to CEO Kwon about measures for reforming the company's non-steel business, fostering of successors, and measures to invigorate the manager training process as issues for a next CEO candidate to resolve, and CEO Kwon promised to pursue such endeavors during his next term.


    The committee members unanimously recommended CEO Kwon as a candidate for the CEO position, having judged him as the right person to increase POSCO's long-term value and enhance its competitiveness.


    CEO Kwon will be re-elected as CEO on March 10 after a general meeting of shareholders and a resolution of the board of directors. 

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