it seems LSM nephew or maybe Lee Soo Man himself started to losing control of SM

Quote from selfmate

hey hey hey!!!

LSM's success is SME's success!!!

yeah but I think it's time to move on

I love good news,

'이수만의 SM' 26년만 역사 속으로..멀티 프로듀싱 체제 전환

[스타뉴스 문완식 기자] 이수만 SM 총괄 프로듀서 / 사진제공=SM엔터테인먼트SM엔터테인먼트 (공동대표 이성수, 탁영준)은 주주와 임직원, 모든 이해관계자로부터 신뢰받고 존경받는 글로벌 기업으로의 도약을 위해, 작년 2월부터 SM에 대한 지배구조 개선 및 주주가치 제고 캠페인을…

v.daum.net

SM "Accept Align Partners' proposal to leap forward as a respected global company"

SM Entertainment (co-representatives Lee Seong-soo, Tak Young-jun) is Align, which has been leading a campaign to improve governance and shareholder value for SM since February last year in order to become a global company trusted and respected by shareholders, employees, and all stakeholders. Partners Asset Management Co., Ltd. announced on the 20th that it had decided to accept the governance improvement plan proposed by CEO Lee Chang-hwan.

Align greatly welcomes SM's decision, and as a friendly shareholder, they have agreed to work together to improve SM's governance and enhance shareholder value.

The 12 agreements between the two companies are as follows.

1) At the 28th regular general meeting of shareholders scheduled to be held in March 2023, SM decided to organize the board of directors with 3 inside directors, 3 outside directors, and 1 other non-executive director. The recommendation will be made through a temporary outside director candidate recommendation committee composed of one inside director, one outside person, and one recommendation committee member from Align.

2) At the regular shareholders' meeting, SM recommends Align CEO Lee Chang-hwan as one other non-executive director to be newly appointed.

3) After the regular shareholders' meeting, SM separates the representative director and the chairman of the board of directors, and appoints one of the outside directors as the chairman of the board.

4) After the regular shareholders' meeting, an outside director candidate recommendation committee composed of all outside directors is established, and future outside director candidates are recommended by the committee.

5) After the regular shareholders' meeting, SM establishes the Internal Transactions Committee, which is composed of all non-executive directors and auditors, to closely review all transactions between SM and major shareholders, specially related persons, related companies, and subsidiaries, and take necessary measures.

6) After the regular shareholders' meeting, SM establishes a compensation committee within the board of directors to evaluate the management's performance, determine the compensation level and form of compensation, etc. The members of the compensation committee are composed of all directors, not inside directors.

7) SM officially announces and implements the transition to a multi-production system.

SM decides to sell non-core assets owned by its headquarters and subsidiaries that are unrelated to its main business and use them as investment resources for the growth of its core business.

9) SM strengthens IR and shareholder communication to the highest level in the industry.

10) SM discloses and implements a policy of returning at least 20% of separate net profit to shareholders for the next three years, and the policy is re-disclosed every three years.

11) Align withdraws the lawsuit claim.

12) Align has ended its one-year public shareholder campaign, and as a friendly shareholder, cooperate with the SM board to improve SM governance and enhance shareholder value.

With this decision, SM will be able to further solidify the independence, transparency and reliability of the board of directors. SM decided to recommend Changhwan Lee, CEO of Align, who has led SM's shareholder value enhancement campaign on behalf of several shareholders, as a non-executive director at the regular shareholders' meeting, and recommended a temporary outside director candidate including one recommended member from Align. Through the committee, three new outside directors will also be recommended as persons whose independence and expertise have been verified.

In addition, the Internal Transaction Committee, the Compensation Committee, and the Outside Director Candidate Recommendation Committee will be launched centering on other non-executive directors and outside directors to be newly appointed this time, and work to improve governance to a global level will begin in earnest. First, it was decided to set up the Internal Transaction Committee to closely review and take necessary measures on major internal transactions that have been controversial so far, and to motivate talented people through the Compensation Committee, while providing an advanced compensation plan that harmonizes the interests of management and shareholders. is introduced, and the independence of the board of directors will be maintained in the future through the establishment of a committee for recommending candidates for outside directors.

In addition, SM decided to switch to a multi-production system from 2023 to establish a long-term sustainable production system. For the past 26 years, SM has built its own special identity through the continuous creative production of founder Lee Soo-man. Starting with HOT, which debuted in 1996, SM has produced K-pop artists representing Korea such as SES, Shinhwa, BoA, TVXQ, Super Junior, Girls' Generation, SHINee, f(x), EXO, Red Velvet, NCT, and Espa. there is a bar

In the future, under the new multi-producing system, several talented and talented junior producers will inherit and develop SM's unique identity. As a result, it is expected that SM's creative production will become sustainable and productivity and originality will be maximized.

In addition, it is expected that SM will be able to accelerate the enhancement of shareholder value in the future according to the sale of non-core assets, reinforcement of IR, and announcement of shareholder return policy.

Co-representatives Lee Seong-soo and Tak Young-joon of SM said, "In order for SM to become a respected global entertainment company, we agreed with the opinions of various shareholders and stakeholders that governance improvement, such as establishing an independent board of directors that everyone can trust, is necessary. "We will dispel concerns in the capital market surrounding SM through the introduction of a sustainable multi-production system, reorganization of corporate governance, and strengthened communication with shareholders," he said.

Align CEO Lee Chang-hwan said, "SM is the representative K-pop company in name and reality with the best and largest artist pool and original IP in Korea." , It will be recorded as an advanced example of capital market activist investment in Korea.”

With this agreement, SM management and Align will resolve all internal and external conflicts over the past year, and Align will remain as a partner for enhancing shareholder value and a friendly shareholder of SM. With this change as an opportunity, SM is expected to leap forward as a leading global entertainment company with transparent and advanced governance befitting its status in the industry.

This part is very interesting

"In the future, under the new multi-producing system, several talented and talented junior producers will inherit and develop SM's unique identity. As a result, it is expected that SM's creative production will become sustainable and productivity and originality will be maximized"

so new producer will take over? Hopefully no more experimental noise nonsense

I used to pray for something like this

Very nice just in time with aespa comeback (maybe soon) , I expect them to do better now