Foreigners and women given more active roles
The Samsung Group promoted fewer executives this year in its management shakeup amid lackluster performance at its flagship unit Samsung Electronics.
In total, the company promoted 353 executives ― 42 as new executive vice presidents, 58 senior vice presidents and 253 vice presidents. This represents a reduction of more than 20 percent from last year, when Samsung elevated 476 executives.
"This year's reshuffle reaffirmed Samsung's long-time principle that promotion is based on performance," it said.
The group elevated 165 executives at Samsung Electronics, compared to 227 last year and 226 in 2013.
The group promoted 22 executives at Samsung Electronics' memory chip division, however, as its chip business remained strong throughout the year.
Samsung's experienced PR officials were given increased roles as Lee Joon, head of communication at Samsung Future Strategy Office, was promoted to executive vice president.
Also, Nho Seung-maan, who has long been handled the conglomerate's external affairs, was also promoted to executive vice president. The office is a control tower that handles all key decisions on affiliates.
For Samsung Electronics, this year provided its lowest numbers of the last four years.
While Samsung's mobile chief Shin Jong-kyun retained his current position, the size of its handset business will be scaled down.
Three presidents of the division's key units, including Lee Don-joo, head of strategy at the mobile unit, will be leaving the company.
"Samsung Electronics is on track to improve profitability by realigning business strategies and restructuring business divisions that have been questioned over sustainability," said a company official.
For the third quarter, profit at Samsung's handset business, a key earnings engine, were nearly halved from last year, amid intensified competition with its chief Chinese rivals.
Women, foreigners given more roles
Thursday's reshuffle on executive-level positions highlighted the group's commitment to giving women and foreigners senior roles within the conglomerate.
Samsung promoted 14 women, compared to 15 last year.
Ha Hae-seung, who joined Samsung from Hewlett-Packard, was promoted to senior vice president. Samsung said Ha helped the company expand its printer business and boost partnerships with key clients.
System architecture expert Ryu Su-jeong, finance IT expert Ahn Jae-hee from Samsung Life, strategist in smartphones Jun Eun-hwan and content expert for televisions Han Sang-sook were also elevated as new vice presidents, said the statement.
"The elevation of women is a part of a group-wide strategy to promote women to senior ranks, which has been an official company hiring policy since 1992," said a Samsung spokesman.
The spokesman added that Samsung is trying hard to find innovative ways to change its corporate culture.
Stressing the company's steady progress toward women and foreigners, the group has promoted nine foreigners as executive-level positions.
"Regardless of nationality and skin color, Samsung hires proven foreigners as we are a global company. Our top priority is to have a human-oriented management philosophy," it said.
David Steel, head of communications at Samsung Electronics America, was elevated to executive vice president, making him the third foreigner to hold the title.
Lee Min, who managed the development of curved UHD TVs, was also promoted to executive-level, while Samsung SDS' Ahn Dae-joong and Samsung C&T's Seol Chang-woo were recognized for their huge contribution to cutting costs and improving competitiveness.
Samsung will announce a further divisional shakeup next week.