NH Investment & Securities has decided to shift from a single-CEO system to a co-CEO system, a strategy to strengthen expertise by business line and accountability in management.
On the 24th, NH Investment & Securities held a board meeting and approved a "change to the CEO operating system" to convert governance from a single-CEO structure to a co-CEO structure. NH Investment & Securities said it will convene the Nominating Committee to make a final decision on the CEO candidates.
The revamp is seen as a move to respond more proactively to a growing capital market as NH Investment & Securities has expanded in size and diversified its business structure after entering the individual managed account (IMA) business.
Since its launch in Dec. 2014, NH Investment & Securities has maintained a single-CEO structure. Under a co-CEO system, two chief executives will have authority over their respective divisions and make independent decisions.
The company had initially planned to appoint a new CEO at the regular shareholders meeting in March. However, last month it put on hold the decision on extending the term of current NH Investment & Securities CEO Yoon Byung-woon and decided to first review a transition in the management system.
Through this transition, NH Investment & Securities plans to run core business divisions under a specialized, accountable management structure. It said it will improve execution and decision-making speed in each division, and strengthen the medium- to long-term growth base by organically linking customer asset expansion with investment banking capabilities.
The board of NH Investment & Securities reviewed the expected benefits and potential issues of introducing a co-CEO system and decided to put in place supplementary measures in stages during the transition.
An NH Investment & Securities official said, "This revamp is not a measure to address a specific pending issue or a short-term matter, but a strategic choice to raise the company's competitiveness and accountable management framework in a growing capital market," adding, "We will strengthen expertise by institutional sector and connect the expanding business opportunities after IMA to enhanced value for customers and shareholders."