On Thursday, Samsung Electronics Co Ltd announced that a new chief financial officer (CFO) is set to be in charge of one of the biggest corporate cash piles in Asia. The company also said that it would form a group within the firm that will coordinate with tech affiliates.
The said announcement follows this week’s appointment of a new generation of top managers that are set to take the place of leaders of its three main businesses – smartphones, consumer electronics, and semiconductors- and a pledge to reward shareholders with payouts amounting to $26 billion through 2020.
The shake-up is possible to reduce the concerns of investors regarding a leadership vacuum following Vice Chairman Jay Y. Lee’s arrest and conviction on bribery charges earlier in 2017.
Roh Hee-chan, the new CFO, will supervise about 76 trillion won ($68.27 billion) in cash and cash equivalents as of the period ending September which was 8 percent greater than three months earlier. Roh was the former CFO of Samsung Display Co Ltd, Samsung’s subsidiary.
Samsung Electronics also announced that it will establish a body that is set to coordinate issues that are common among the firm and its affiliates such as Samsung Electro-Mechanics Co Ltd. and Samsung SDI Co Ltd. However, it did not elaborate on the matter.
Previously, the broader Samsung Group had a Corporate Strategy Office which oversaw group companies, coordinated major decisions including asset sales and managed support for weakened affiliates. However, in February, it was disbanded because of its involvement in the graft scandal that led to the detainment of Lee.
The promotion of Roh was one of several that were announced on Thursday. Other promotions that were announced include that of Hwang Deuk-kyu, who will manage the China business of Samsung Electronics. She previously worked as the chief of semiconductor production facilities in South Korea. Majority of the other senior executives added ‘president’ to their present job titles.
Samsung also handed advisory roles to Kwon Oh-Hyun, the former co-Chief Executive Officer and Vice Chairman, Yoon Boo-Keun, the former co-CEO, and President J.K. Shin, the President and former co-CEO, all three of whom attempted to step down last month.
The share price of Samsung has risen by 6 percent in the three days since the management changes were first revealed, reaching a record of 2.876 million won during Thursday trade.