Securities firms’ CEOs striving to stay alive
CEOs of local securities firms may feel uneasy nowadays as they will have to go through crucial tests to get another term at shareholders’ meetings slated mostly for May and June.
Some are expected to serve another term thanks to handsome performances despite unfavorable market conditions, while others will face a forced exit for disappointing results.
According to industry sources, Hwang Sung-ho of Woori Investment and Securities, Ryu Sang-ho of Korea Investment and Securities and Yoo Joon-yeol of Tongyang Securities are some of the CEOs from top 10 securities firms who are likely to keep their current posts for another term.
The firm ranked second among securities firms in terms of operating profit, posting 225.2 billion won in the 2011 fiscal year.
But the only unfavorable condition is the company is engaged in a compensation suit after it caused financial damage to investors by selling commercial papers of LIG E&C during his term.
Ryu is also a strong candidate to stay on given his firm’s achievements under his leadership.
Korea Investment and Securities has also shown a record performance, posting 276 billion won in operating profits for the fiscal year 2011, which saw it become the market leader.
Market insiders also expect Yoo to serve another term as he has managed his firm in a stable manner. It experienced a turnaround to black from red, posting 42.1 billion won profits in the fiscal year 2011.
However, Daewoo Securities CEO Im Kee-young is receiving mixed responses on his fate.
Since he took office in 2009, the company has posted nearly 1 trillion won in operating profit and diversified sources for profit by strengthening overseas trading. He is also highly acclaimed by employees.
But he has to fight against the odds that no one has served consecutive terms at Daewoo Securities since 2004. Another setback would be the privatization of KDB Financial Group, a holding firm of Daewoo Securities, which could involve management restructuring.
There are also some CEOs who are expected to offer to step down.
Roh Chung-nam, CEO of Daishin Securities, is likely to resign as the board of directors is expected to appoint the firm’s vice president as new CEO, according to industry sources.
Hana Daetoo Securities CEO Kim Ji-wan is also expected to give up his post, after he was excluded from the registered list for the board of directors last year. Kim has already expressed his will to resign.