Samsung wanted to give a boost to its vintage, and did so with an ad featuring a hand held its investors. The statement addresses issues including dividends and long-term growth, but between the lines is primarily a plea for trust and a demonstration of the fact that you intend to react to the events of recent months.
A response to the Galaxy Note 7
The case of Galaxy Note 7 is certainly not gone unnoticed, but in the immense structure of the Korean group it was a great little spot and a little more. Suffice it to observe the trend in the stock market of the group, grew strongly from January to date, and with a rise of only interrupted and slowed down by autumn facts.
Webnews him in his time early : “The stock market is a problem, but it is only a consequence, and in the long run will depend on just a small part of what happened with Notes 7 “. Samsung seems to be of the same opinion when, as soon as the case was closed, he started working on something bigger and bombastic, now coming out with a statement that is the ultimate answer to the detractors of the group. In the press there is everything that a group can set up to straighten the route: a new structure, greater attention to outside investors and audit to reach unhurriedly the best organizational equilibria.
Because if the Galaxy Note 7 exploding, the cause was so technical, I was first of all a problem of protocols that have prevented the problem to emerge: the haste in the development, weakness in audits, the fragility in the diligent response all’intoppo , the absence of immediate assistance in front of the first cases. When to explode was not just mobile, but its entire market, Samsung has had to responding to its shareholders motivating problems and, above all, having to prove that they are able to react.
Dividends and commissions
“Today we are announcing the extensions of the actions that we started last year and which represent the next phase in the evolution of policy for our shareholders and our governance.” The first action is to increase the share of the money it will be returned to shareholders in the next two years, allocating of this chapter 50% of the “free cash flow” (and brought the share to the maximum with respect to the announced scissor 30-50): will increase dividends and the resulting dividend yeald reach shares of most interest to long-term investors.
Just looking at the long term, we expect new members to the board and, above all, a new Governance Committee designed to serve primarily as a guarantor of value for shareholders. The role of the new committee will address against the board, monitoring the actions in order to ensure their validity. To this it was also added the ability to create a new holding company whose perimeter is, however, still to be defined. The idea is to arrive at a new azienza to be quoted on new international markets, but it is an extremely delicate transition is responsible for that assessment to an operator who will have to return their findings within the next six months.
You look at the long term, in short, announcing immediately that commitment but postponing the effects of this development until 2017. The rush has already given bad advice too many times in recent months and Samsung now plans to take the time necessary to ensure that the weaknesses revealed in the case of Note 7 can never be repeated: a stronger, more efficient organization and a long-term perspective are the three cards that you play the board to restore the relationship of trust against a growing shareholder base nervous and increasingly prepared to ask armchairs in the control room of the Korean group.