NCSoft has announced its intention to reduce the compensation limit for its directors for the first time since the company’s inception. (Image courtesy of NCSoft)
SEOUL, Feb. 29 (Korea Bizwire) – In a groundbreaking move aimed at enhancing operational efficiency in the face of declining profitability, NCSoft, a leading South Korean video game developer, has announced its intention to reduce the compensation limit for its directors for the first time since the company’s inception.
The decision, revealed through a notice of the upcoming shareholders’ meeting, proposes to lower the compensation cap from the existing 20 billion won to 15 billion won.
NCSoft’s board currently comprises seven members, including Kim Taek-jin, the company’s co-founder and CEO, and Park Byung-moo, the designated co-CEO, along with five external directors: Hwang Chan-hyun, Baek Sang-hoon, Choi Young-ju, Jeong Gyo-hwa, and Choe Jae-chun.
The forthcoming shareholders’ meeting scheduled for next month aims to reappoint Kim as CEO and appoint Park Byung-moo as a new internal director.
In addition to these moves, NCSoft plans to introduce Lee Jae-ho, the current CFO of Osstem Implant and former CFO and CEO of NC West, as a new external director and audit committee member.
This move signifies a strategic reshuffling within the company’s leadership in response to its recent financial downturn.
The past year has been challenging for NCSoft, with a 30% decrease in revenue and a 75% drop in operating income compared to the previous year.
The downturn is largely attributed to declining sales from its flagship ‘Lineage’ series of mobile games and underperforming new releases.
An NCSoft spokesperson elaborated on the decision to reduce the director compensation limit, citing the volatile domestic and international business environment and the company’s overarching strategy of cost and operational efficiency as key factors.
This decision reflects NCSoft’s commitment to navigating through challenging times by tightening its fiscal policies and aligning its executive compensation with its current financial performance and future outlook.
Kevin Lee (kevinlee@koreabizwire.com)
