Flashlight Capital Partners Calls for Tesla-like CEO Compensation at KT&G
11 Julio 2024 - 8:10AM
Business Wire
KT&G’s current CEO compensation has been
‘inversely correlated’ with stock price
Flashlight Capital Partners Pte. Ltd (“Flashlight Capital”), a
significant shareholder of KT&G Corporation (KRX: 033780)
(“KT&G” or the “Company”), today demanded a revision of
KT&G’s CEO compensation plan to normalize stock price.
“In the recent past, KT&G’s former CEO was awarded a
significant amount of compensation despite a 21% drop in KT&G’s
stock price, while the KOSPI index surged by 27%," remarked
Sanghyun Lee, Managing Partner of Flashlight Capital. "In March
2024, we urged the KT&G board to link the CEO compensation to
stock performance, but no action has been taken so far," Lee
added.
Under the new plan proposed by Flashlight Capital, the CEO will
receive a base annual pay of KRW100 million and be granted shares
based on stock price milestones over the next three years. For
instance, if the stock price doubles, the CEO will be awarded
shares worth KRW10 billion.
“Many of the current KT&G board members are under police
investigation for potential bribe charges,” Lee highlighted. “Given
that KT&G's stock price is over a 50% discount compared to
industry peers, we believe doubling the stock price is highly
achievable, provided the board act promptly and decisively,” Lee
emphasized.
Flashlight Capital proposed an Extraordinary General Meeting
(EGM) for shareholder approval and requested a response from the
KT&G board by the end of July.
About Flashlight Capital
Flashlight Capital Partners Pte. Ltd is an investment management
firm founded by the Carlyle Group’s former Head of Korea, Sanghyun
Lee. Flashlight Capital is dedicated to strengthening corporate
governance and enacting transformative change to its portfolio
companies, and launched KT&G campaign since 2022. For more
information about Flashlight Capital, please visit
www.FlashlightCap.com.
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