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Samsung Restructures, Names New CEO

Samsung Electronics has appointed Geesung Choi as its new CEO as part of an organizational restructuring intended to increase operating efficiencies and strengthen the independence of the company's business divisions, according to a statement issued by the company.

Samsung Electronics has appointed Geesung Choi as its new CEO as part of an organizational restructuring intended to increase operating efficiencies and strengthen the independence of the company's business divisions, according to a statement issued by the company.

Samsung also enhanced its C-suite by appointing Jay Y. Lee to the newly created position of chief operating officer, and Ju-Hwa Yoon as chief financial officer. Yoon-woo Lee, current vice chairman and CEO, retains his role as chairman of the Board of Directors.

According to the statement, Samsung also will be adopting a "company system" in which each business unit is managed similarly to a standalone company. The new alignments, organizationally and at the executive level, are expected to create a more focused and responsive business structure.

"Samsung has recovered well over the past year, thanks to Yoon-woo Lee's leadership and a measured response to the global financial crisis," said Choi in a statement. "With this forward momentum, we believe now is the time for us to make these important organizational changes to prepare for the challenges and opportunities ahead."

Effective immediately, the heads of all Samsung Electronics business divisions report to Choi and the C-suite. According to the company, the new structure provides a more unified and efficient management team, consistent with global business models, and reflecting the executive structures of many leading multinationals.

"Our renewed profitability enabled us to think long term–to make sure we can continue leading the market," Choi said in a statement. "As a result, we've strengthened the C-suite and created a new executive position, the COO, to help expedite decision making, improve efficiency, and mediate between our business units, ensuring that they work well together in meeting our customers' needs."

Incoming CEO Choi previously held the positions of president of the telecommunications networks business and president of the digital media business.

While creating the greater autonomy at the operating level, says the company, the benefits of the new structure also include a reduction in the company's decision-making hierarchy from three to two stages, and supporting stronger focus and speed of execution in business and investment strategy. Customers are expected to benefit from increased independence in decision-making and faster speed to market.

Starting with the first quarter of 2010, Samsung will also adopt the International Financial Reporting Standards (IFRS), global accounting principals established by the International Accounting Standards Board (IASB) and practiced by many global corporations.



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