Local proxy advisor Korea Corporate Governance Service on Wednesday recommended shareholders to vote for Hyundai Motor’s plan to appoint nonexecutive directors, backing the auto giant’s governance overhaul plan that will be put to vote next Friday.

The KCGS, which advises National Pension Service and other institutional investors, favored Hyundai’s pick for independent board nominees, dismissing US activist fund Elliott Management’s proposal. 

The three nominees picked by Hyundai include Yoon Chi-Won, Vice Chairman of UBS AG’s wealth management division, Eugene Ohr, former partner of Capital International and and Lee Sang-Seung, professor of economics at Seoul National University.

The KCGS also said it also agrees with the company’s proposal to offer 3,000 won ($2.65) per common share saying the company’s policy to return to its shareholders are in accordance with a stable dividend policy. It recommended shareholders to vote against Elliott’s proposed payout of 21,967 won per share. 

The group is slated to hold a shareholders’ vote on March 22.


(ddd@heraldcorp.com)