Doosan Adopts Global Standard Executive Compensation Program
Doosan, well known for its innovative restructuring, is introducing a global standard executive compensation program for all of its executives, providing more active and long-term incentives.
``We are abolishing the retirement pension system for all of our executives, replacing it with stock options and other incentives which can be more rewarding for both individuals and the company,'' said Doosan's president and CEO Park Yong-maan.
According to him, the executive system is also being streamlined to reduce the current six-tier format to just three - managing director, vice president and president.
``What this basically does is give executives more room to establish and achieve their management objectives but more responsibility as well,'' said the Boston University MBA.
Doosan introduced an individual wage contract program for its executives for the first time in Korea in 1994 and the latest change takes this compensation program one step further.
Park said the new executive compensation system is basically designed to offer executives incentives to improve the performance of the company for their benefit and the benefit of shareholders.
``This is by no means a program aimed at reducing manpower costs or reducing the number of executives. In fact, it will be instrumental in making Doosan bigger and stronger,'' Park said.
He said the restructuring of senior management is the final part of Doosan's aggressive restructuring and indicates that all other objectives have been achieved. …