USA
Executive compensation is directly linked to stock price and shareholder return indicators
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Activist funds demand increased dividends while vying for board seats
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Delaware courts actually hear and rule on breach of fiduciary duty lawsuits
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Management that only retains earnings is exposed to the risk of a dismissal vote
South Korea
The family of the largest shareholder effectively determines the board composition
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2016Introduction of Stewardship Code — recommendation for institutional investors to exercise voting rights
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2020Introduction of separate election of audit committee members and 3% limit on voting rights for largest shareholders
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2024Value-up program — inducing disclosure of shareholder return plans
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2025~26Three amendments to the Commercial Act — inclusion of shareholders in the scope of directors' duty of loyalty, mandatory cancellation of treasury shares
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The laws are in place, and enforcement precedents start now