Corporate Governance Research Institute·Capital Market Research Institute, successfully held a policy seminar on

‘Recent Trends in Executive Compensation and Improvement Measures for the Regulatory Framework.’

 On June 19th, a policy seminar was held at the Bulls Hall on the 3rd floor of the Financial Investment Center in Yeouido. This seminar was jointly organized by Korea University's Corporate Governance Research Institute (Director: Kim Woochan) and the Capital Market Research Institute. It featured presentations and panel discussions on the topic "Recent Trends in Executive Compensation and Improvement Measures for the Regulatory Framework." 

  The presentations were delivered by Professor Shin Jaeyong of Seoul National University Business School, Researcher Hwang Hyunyoung of the Capital Market Research Institute, and Professor Lee Changmin of Hanyang University Division of Business Administration. The panel discussion, moderated by Professor Kim Junghyuk of the Business School, included Senior Reporter Kwak Jungsoo from Hankyoreh Economic & Social Research Institute, Professor Na Hyunseung from Business School, Auditor Shim Hyeseop from Namyang Dairy Products, Senior Researcher Lee Inhyung from the Capital Market Research Institute, Director Lee Jaein from Hanwha Compliance Committee, and Senior Researcher Jung Jaekyu from Korea ESG Standards Institute. 

 Professor Shin Jaeyong of Seoul National University discussed the "Status and Regulation of Stock-Based Compensation," noting that "in U.S. companies, more than 70% of total executive compensation is stock-based, rewarding long-term stock price increases rather than immediate sales and profits. However, in Korean companies, most CEO and executive compensation is in the form of cash bonuses based on short-term financial performance such as sales and operating profit." He added, "the spread of stock-based compensation among executives in some companies is a meaningful change." 

 Next, Researcher Hwang Hyunyoung from the Capital Market Research Institute presented on "Problems and Improvement Tasks in the Current Executive Compensation Decision Process," comparing the executive compensation disclosure materials and regulations of major domestic and foreign companies. He pointed out issues in Korea's executive compensation system and proposed strengthening shareholders' authority over director compensation decisions and specifying the criteria for determining director compensation disclosed in business reports. 

 Professor Lee Changmin of Hanyang University discussed "Introducing the UK Say-on-Pay System," suggesting, "we should discuss the bifurcated Say-on-Pay system adopted in the UK and the EU” and “if Say-on-Pay is introduced, we need to consider Korea's unique characteristics." He emphasized, " the details to be included in the remuneration policy and remuneration report should be defined by executive order, ensuring detailed standards similar to the UK's disclosure regulations to prevent inadequate disclosures." 

 Following the presentations, the seminar continued with a heated panel discussion moderated by Professor Kim Junghyuk, including questions from the floor. With questions about ESG in Korea and recent issues in business administration, etc. a meaningful discussion concluded the policy seminar.