Lack of gender diversity in global business is routinely pointed out as a big problem that needs to be fixed. Activist investor hedge fund Elliott Associates recently pointed out a lack of diversity on Samsung Electronics’ board as part of its restructuring proposal for the company and Samsung is now said to be considering adding female independent directors to its board. The conglomerate’s Future Strategy Office has reportedly conducted studies on the number of outside board members each of its affiliates has, their area of expertise as well as their reason for appointment and tenure.
Samsung Electronics – the conglomerate’s cash cow – has a severe lack of diversity as all five independent directors are male. Ewha Women’s University professor Kim Eun-mi was appointed as the company’s first female director in 2013 but she was succeeded by Sungkyunkwan University professor Park Jae-wan after her term ended this year. The lack of diversity is apparent at other affiliates as well. Only three of the 15 listed companies operating under the Samsung Group have independent female directors.
Samsung has a lot of time on its hands to come up with a strategy that addresses the lack of diversity on Samsung Electronics’ board unless it’s willing to increase the number of seats. No independent board member will see their term end before March 2018 so Samsung has a couple of years to chalk out a strategy and be ready to put it in motion when the time comes.
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