★ Samsung Reports Great Preliminary Q3 Numbers, CEO Will Resign in March (Oct 13, 2017)
Samsung today announced its preliminary results for Q3, but also announced that its CEO, Oh-Hyun Kwon, will step down in March 2018. The preliminary results are very much in keeping with results for the last several quarters, with record revenues and profits for any quarter, likely again driven by very strong memory sales and higher memory prices, though the smartphone business also likely did well again. Samsung’s management structure is a little different from most western tech companies: it technically has three CEOs, who each run a big chunk of the business, with Kwon overseeing the Device Solutions segment while also being chairman of the board of directors and therefore the closest thing to an overall CEO the company has. That Device Solutions business, interestingly, is the home of memory and other component products at Samsung, which have been the source of its great financial strength, so Kwon’s resignation certainly isn’t a response to poor performance. Rather, it seems likely to be a response to the broader scandals that have engulfed the Samsung group of companies, including Jae-Yong Lee, grandson of the company’s founder, who is currently in jail (and was also technically a vice chairman at Samsung Electronics). His resignation later certainly makes it sound like he is resigning as a matter of honor and to allow the company to move on under fresh leadership, rather than an indication that he’s tainted at all by association with the scandals.
via Bloomberg
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