Samsung Electronics said Tuesday it will increase shareholder returns and review its corporate structure as investors step up pressure to reform the South Korean tech giant’s governance structure following the Galaxy Note 7 fiasco.
The South Korean company said in a statement that it will boost dividends by 30 percent from 2015 to about 4 trillion won ($3.4 billion) for the full year of 2016. It will also repurchase its shares in January, which will be then canceled. The total budget for the shareholder returns including dividend payment and share buyback will be about half of its free cash flow for this year.
Samsung also promised to strengthen corporate governance procedures in its board. It will invite one new independent member to the company’s nine-person board and create a new governance committee comprised of independent board members. The company currently has six committees on management, audit and others.