Samsung CEO said he is resigning to move on to the next phase of his life even though the top executives are battling corruption charges against them.
Samsung CEO and Vice President, Oh-Hyun-Kwon announced his resignation today even though the company is poised for making record operating profits estimated at $12.8 billion for the September quarter.
The timing of the announcement is no doubt significant given, in the own word of Kwon, the huge management crisis that company is in the midst of right now. Even though not explicitly mentioned, the obvious reference here is the arrest of the leader of the Samsung group, Lee Jae-yong along with four other top-ranking executives of the company on corruption charges. Lee has subsequently been convicted and has been served a five-year jail term.
In a letter to the employees, Kwon said he is leaving to make way for an infusion of fresh blood in the management, one who will be better tuned to respond to the rapidly changing IT landscape. Kwon, 64, also said he has nothing more to give to the company that he has served half is life and is keen to move over to the next phase of his life. Kwon has been associated with Samsung for 32 years, having joined way back in 1985.
Kwon’s current term ends on March 2018 but said he wouldn’t be seeking a re-election at that point in time. Kwon has also been heading the components and display division within Samsung. Both the sectors have been doing incredibly well though Kwon would be relinquishing the two posts as well. He has been appointed as the CEO of the Samsung group on 2012.
Samsung is yet to announce a successor to Kwon though that sure won’t be an easy task given the sheer proportions that the company has grown into. The conglomerate is expecting consolidated sales to top $54.8 billion, which marks a year-over-year revenue increase of 28 percent and an operating profit increase of 170 percent. All of this proves the stellar recovery the company made post the huge Note 7 fiasco that had then cost the company billions in losses.