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Governance

Board-Centric Management

SK D&D implements 'board-centric management' to enhance stakeholder interest and happiness, and innovate its governance structure. To strengthen the oversight role of the Board of Directors (BOD) as the highest decision-making body, the majority of the BOD comprises independent directors. The BOD operates several committees — including the HR Committee, the Independent Director Recommendation Committee, the ESG Committee, and the Audit Committee — to enhance the expertise and efficiency of its operations. To ensure the effective authority of the BOD, regulations for the BOD and its subcommittees are newly established and enhanced, with these regulations disclosed on the website. Additionally, SK D&D has formulated and published the Corporate Governance Charter to achieve transparent and accountable management and establish a robust corporate governance framework. Through these efforts, we aim to expand the responsibilities of the BOD and oversight bodies, enhance shareholder communication through governance disclosures, and achieve long-term stability and growth.

Board of Directors’ Composition and Responsibilities

Composition of the Board

SK D&D's Board of Directors (BOD) serves as the highest decision-making and supervisory body for management issues affecting the entire company. As of April 2024, it comprises five members (one executive director, three independent directors, and one non-executive director). To enhance objectivity and independent decision-making, the BOD operates with separate roles for the CEO and Chairperson of the Board. Moreover, the Board comprises more than 50% independent directors and appoints experts in various fields such as finance and management as independent directors to reflect diverse perspectives and expertise in board decision-making. Furthermore, we support the BOD in maintaining its practical expertise, independence, and efficiency through the operation of its committees and internal support organizations.

이사회 구성*

구분인원/비율
사내이사 수1명
기타비상무이사 수1명
사외이사 수3명
(법적 최소 기준) 사외이사 수2명
사외이사 비율60%
이사회 내 사외이사 목표 비율50%
성별남성5명
여성0명
연령대별30세 이상 50세 미만1명
50세 이상 60세 미만4명
60세 이상1명
  • *2024년 12월 31일 기준

이사회 구성 현황*

구분인원
ESG위원회이사 수4명
사외이사 수2명
감사위원회이사 수3명
사외이사 수3명
재무전문가 수1명
인사위원회이사 수4명
사외이사 수3명
사외이사후보추천위원회이사 수3명
사외이사 수3명
  • *2025년 5월 기준

Members of the Board*

CategoryNameExpertisePositionDate AppointedEnd of TermBoard Attendance in 2023
Executive directorDo-hyun KimProfessional managementCEO, ESG Committee2022.03.232025.03.23100%
Independent directorJun-cheol KimAccounting/Audit (Certified Public Accountant)Chair of the Board, ESG Committee, HR Committee, Independent Director Recommendation Committee, Audit Committee (chair)2021.03.302027.03.30100%
Kyung-min KimEnvironment/DataHR Committee (chair), Independent Director Recommendation Committee, Audit Committee2022.03.232025.03.23100%
Mo-doom Kim**Professional management (Lawyer)ESG Committee, HR Committee, Independent Director Recommendation Committee, Audit Committee2024.03.262027.03.26-
Non-executive directorJae-min KimFinance/Market analysisESG Committee, HR Committee2018.11.152027.03.30100%
  • *As of Apr. 2024
  • **He was appointed as a new director in March 2024, so there is no attendance record for 2023

이사별 경력/선임배경

성명선임배경주요 이력
김도현리츠 AMC인 디앤디인베스트먼트(DDI)를 설립해 자산운용에 선제적으로 진출하여 SK D&D를 종합 부동산 회사로 발전시키고 새로운 도심형 주거 상품인 ‘에피소드’의 성공적인 론칭을 수행한 경험을 바탕으로 향후 신사업 개발 및 안정적인 수익 창출에 기여할 것을 기대함서강대 화학공학 학사 現) SK디앤디 대표이사 兼) 프롭티어㈜ 기타비상무이사 前) SK디앤디 경영지원본부장/RESI솔루션운용개발본부장 前) SK에코플랜트㈜(舊 SK건설㈜) 기획운영실장
김준철SK D&D의 감사위원회 위원장을 역임하여 회사의 재무·회계 리스크를 성공적으로 관리한 재무 전문가로서, 당사의 감사위원회 및 이사회 독립성 강화와 투명성 제고를 달성하여 회사의 발전과 주주들의 권익보호에 기여할 것을 기대함서울대 경영학, 서울대 경영학 석사 現) 다산회계법인 회계사 現) 덕성여자대학교 겸임교수 現) ㈜유한양행 사외이사 前) 딜로이트안진회계법인 부대표
김경민당사의 주된 사업 영역인 부동산 개발 분야의 전문적인 지식과 풍부한 경험을 바탕으로 사업 전략 방향성 제시 및 사업개발 타당성 검토 등에 기여할 것을 기대함現) 서울대학교 환경대학원 교수 前) Property & Portfolio Research, Inc 선임연구원
김모둠M&A, 기업형사, 환경규제, 노동 관련 다수의 업무 수행 경험을 바탕으로 당사의 ESG 중심 경영 및 Governance Story 고도화에 기여할 것으로 기대되며, 당사의 주된 사업 영역인 부동산 개발 분야의 전문적인 지식과 풍부한 경험을 바탕으로 사업의 리스크 검토 및 의사결정에 기여할 것을 기대함現) ㈜디딤이앤에프 사외이사 現) 법무법인 동진 구성원 변호사 前) 법무법인 대호 변호사
노정연공정성, 객관성을 바탕으로 한 철저한 사실 분석 능력과 강한 윤리의식을 보유하고 있어, 독립적인 의사결정을 통해 이사회 투명성 제고에 중요한 역할을 할 것으로 기대되며, 컴플라이언스, 리스크 관리를 위한 자문을 제공하므로 회사가 지속가능한 성장과 주주 가치 제고하는데 기여할 것을 기대함이화여자대학교 법학, 사법연수원 제25기 (前) 서울서부지검검찰청 검사장 (前) 부산고등검찰청 검사장 (前) 대구고등검찰청 검사장 (現) 변호사 노정연 법률사무소 변호사
김재민다양한 시장에 대한 분석 경험을 토대로 투자 자산 관리 강화, 재무 전략 고도화 및 불확실한 경제 환경 대응 등 당사의 성장 방향을 제시하고 회사 운영의 효율화에 기여할 것을 기대함연세대 화학공학 학사 現) 한앤코개발홀딩스(유) 부사장 前) H&Q Asia Pacific Korea 이사

Board Responsibilities and Roles*

  • *SK D&D Board responsibilities and roles are set out in the Corporate Governance Charter

Board Committees

The BOD of SK D&D has established the Audit Committee, the ESG Committee, the HR Committee, and the Independent Director Recommendation Committee to enhance the efficiency of the management decision-making system. The authority of the BOD is delegated to each committee, and the proportion of independent directors is specified in each committee’s regulations to ensure their independence. The Independent Director Recommendation Committee and the Audit Committee are composed entirely of independent directors, while the HR Committee and the ESG Committee include at least 50% independent directors.

Compositions of Board Committees*

CommitteeKey FeaturesMemberSupporting Organization
Audit Committee
  • Report directors’ non-compliance with laws/regulations and the Articles of Incorporation
  • Report on the assessment of the operational status of the Internal Accounting Control System
  • Prepare assessment standards and procedures for selecting an external auditor
  • Other matters stipulated in the law, Articles of Incorporation, or BOD regulations
Jun-cheol Kim (chair**/ID) Kyung-min Kim (ID) Mo-doom Kim (ID)Internal Control Part
HR Committee
  • Assess the CEO and determine whether the CEO will remain in office
  • Propose the dismissal and appointment of the CEO
  • Nominate CEO candidates
  • Determine appropriateness of remuneration for each executive director
Kyung-min Kim (chair /ID) Jae-min Kim (NED) Jun-cheol Kim (ID) Mo-doom Kim (ID)People & Culture Part
ESG Committee***
  • Develop and revise annual business plans
  • Review mid/long-term plans and major improvement tasks
  • Review ESG-related policies, plans, activities and performances (Detailed agenda: climate change, environment management, human rights management, etc.)
Do-hyun Kim (ED) Jae-min Kim (NED) Jun-cheol Kim (ID) Mo-doom Kim (ID)Planning Management Part, ESG Part
Independent Director Recommendation Committee****
  • Nominate independent director candidates to the general meeting of shareholders
  • Review other issues required to nominate independent director candidates
Jun-cheol Kim (ID) Kyung-min Kim (ID) Mo-doom Kim (ID)Board Secretariat
  • *As of Apr. 1, 2024 / ID: Independent Director, ED: Executive Director, NED: Non-executive Director
  • **Jun-cheol Kim, the chair of the Audit Committee, qualifies as an expert in corporate disclosure form preparation under Type 1 (accountant), meeting the basic qualifications and required employment period stipulated by the Enforcement Decree of the Commercial Act
  • ***As of April 2024, the Chairperson of the ESG Committee has resigned prematurely due to personal reasons (such as assuming office in a newly established corporation by a spin-off), and future appointments are planned
  • ****As of April 2024, the Chairperson of the Independent Director Nomination Committee has retired upon the expiration of their term, and future appointments are planned

Board Expertise

SK D&D publishes the Board Skill Matrix (BSM), a multi-faceted assessment tool that evaluates the skills and competencies of its board members in a matrix format. The BSM of SK D&D is categorized into eight areas: Leadership, Business Development & Strategy, Finance/Accounting & Risk, Legal & Regulatory, ESG, Core Industries (Real Estate, Living Solutions, Energy), Global, and M&A/Capital Markets. It indicates the proportion of board members with expertise and competencies in each category. By leveraging the BSM, we plan to review the composition of the Board of Directors and establish a board comprising members who can create synergies and drive decision-making based on their expertise.

Board Skill Matrix (BSM)*

CategoryDo-hyun KimJun-cheol KimKyung-min KimMo-doom KimJae-min KimProportion
Leadership100%
Business Development & Strategy---40%
Finance/Accounting & Risk---40%
Legal & Regulatory---40%
ESG---40%
Core Industries**---40%
Global-80%
M&A/Capital Markets-80%
  • *As of Apr. 1, 2024
  • **Real Estate, Living Solutions, Energy

이사회 다양성 및 전문성

구분단위202220232024
50세 이하 이사 수001
50세 이상 이사 수885
이사회 내 재무 전문가 수211
감사위원회 내 재무/회계 전문가 수111

Providing Training for Directors

SK D&D regularly conducts training sessions for independent directors to strengthen their expertise. In 2023, all independent directors and audit committee members received focused training on risk management and internal control enhancements due to changes in the business environment, such as spin-off. Additionally, we provide necessary training for audit committee members through programs offered by external professional organizations, such as the Audit Committee Forum and accounting firms.

2023 Independent Director Training Performance

DateTraining OrganizationKey Training DetailsAttendance
2023.06.21Samil PwCStrengthening internal controls as the business environment changes and risks increase100%

2023 Audit Committee Member Training Performance

DateTraining OrganizationKey Training DetailsAttendance
2023.04.18(Corp.) Audit Committee Forum2023 1st regular forum for auditors and audit committees1/3
2023.04.30Samil Audit committee schoolCorporate Director School (5 Courses)1/3
2023.05.31Samil Audit committee schoolAudit Committee School Advanced Course (10 Courses)1/3
2023.06.21Samil PwCStrengthening internal controls as the business environment changes and risks increase3/3
2023.07.13(Corp.) Audit Committee Forum2023 2nd regular forum for auditors and audit committees1/3
2023.09.21(Corp.) Audit Committee Forum2023 3rd regular forum for auditors and audit committees1/3
2023.11.09Deloitte Korea2024 Webinar - Center for Corporate Governance1/3
2023.11.21(Corp.) Audit Committee Forum2023 4th regular forum for auditors and audit committees1/3

Ensuring and Supporting Director Activities

SK D&D purchases Directors & Officers Liability Insurance at company expense annually to appoint competent directors and protect their work and decision-making activities. Additionally, independent directors may receive support or advice from employees or external experts as needed, with expenses covered by the company, and they may request necessary information from the company's business manager to fulfill their duties. These provisions are specified in our Corporate Governance Charter, and SK D&D actively supports independent directors in discharging their responsibilities.

Board Independence and Transparency

Director Appointment Process

Since the establishment of the Independent Director Recommendation Committee in June 2021, SK D&D has been protecting shareholders’ rights to appoint independent directors by recommending candidates for appointment at the AGM through the committee. We transparently disclose candidate backgrounds, reasons for the recommendation, and any affiliations with the company in the AGM notices. The Independent Director Recommendation Committee, composed entirely of independent directors, guarantees the fairness of the appointment process by excluding influence from controlling shareholders or management.

When identifying and recommending candidates for independent directors, the committee examines whether the candidates are disqualified by relevant regulations such as the Commercial Act and its Enforcement Decree and verifies their experience and expertise. When appointing directors, we deliberate on their expertise, diversity, and independence to ensure a balanced composition of the board, avoiding bias towards specific backgrounds or professions, with each director's term of office set at three years. Additionally CEO is nominated and proposed for appointment by the HR Committee and appointed by the shareholders' meeting.

Director Independence and Transparency

SK D&D ensures the independence of its BOD by specifying in its Corporate Governance Charter and committee regulations that each committee within the BOD must consist of a majority of independent directors. In addition, to maintain the fairness and independence of BOD decision-making, SK D&D restricts the voting rights of directors with specific interests in resolutions such as remuneration decisions and director candidate recommendations. Furthermore, SK D&D maintains transparency by reporting the appointment, dismissal, or resignation of independent directors to the Financial Services Commission and the Korea Exchange.

Board of Directors’ Operation and Activities

Board Activities

The SK D&D Board holds regular monthly meetings as a principle, in accordance with the Articles of Incorporation and the Board of Directors Regulations, and convenes additional ad-hoc meetings as needed. The Board is responsible for reviewing the company's goals and management strategies to achieve happiness and sustainable growth for members and stakeholders. It systematically manages both non-financial and financial risks, including ESG risks, and bears the responsibility to execute decisions accordingly. Furthermore, SK D&D manages and controls internal transactions and self-dealings by designating 'transactions between directors and the company' and 'internal transactions between affiliated companies and transactions with related parties' as matters requiring Board approval.

In 2023, a total of 14 board meetings were held with a 100% attendance rate.

Board Activities

CategoryUnit202120222023
Meetings heldTimes171314
Agenda items proposedCases523136
Agenda items approvedCases523136
Reported agendaCases132218
Attendance rate%99100100

Key ESG Agenda Discussions at the Board*

SessionDateAgendaResolution Type
23-12023.01.182023 Health·Safety PlanVoted
Reporting the compliance activitiesReported
23-22023.02.26Remuneration for each executive directorVoted
Establishment of CEO KPIsReported
23-32023.03.07Reporting the operation of the Internal Accounting Control System in 2022Reported
Reporting the evaluation of the operation of the Internal Accounting Control System in 2022Reported
Reporting on the 2022 Board activity assessmentReported
23-42023.04.12Enactment of the Corporate Governance CharterVoted
Amendments to the ESG Committee RegulationsVoted
23-62023.06.21Renewal of Directors & Officers Liability InsuranceVoted
23-82023.08.23Reporting CEO KPIs interim reviewReported
Reviewing the first half performance of SHE and planning for the second halfReported
23-122023.10.26Improvement of CEO remuneration systemReported
24-12024.01.05Appointment of Compliance Officer (Nominee: Il-hong Jang)Reported
24-22024.01.24Remuneration for each executive directorVoted
Establishment of CEO KPIsReported
2024 Health·Safety PlanReported
Reporting the compliance activitiesReported
24-52024.03.11Large internal transactions with SK eternix Co., Ltd.Voted
Reporting the operation of the Internal Accounting Control SystemReported
Reporting the evaluation of the operation of the Internal Accounting Control SystemReported
  • *As of Apr. 1, 2024

Board Committees Activities

The Board committees are regularly convened in accordance with their respective regulations, and their major activities are disclosed in detail in our business reports and on our website.

Board Committee Activities*

CategoryUnit202120222023
ESG CommitteeMeetings heldTimes145
Attendance rate%100100100
HR CommitteeMeetings heldTimes455
Attendance rate%92100100
Audit CommitteeMeetings heldTimes91010
Attendance rate%100100100
Independent Director Recommendation CommitteeMeetings heldTimes210**
Attendance rate%100100-
  • *Audit Committee: Established in March 2021 / Other three committees: Established in June 2021
  • **The Independent Director Recommendation Committee was not held because there was no independent director whose term ends in 2023

ESG Committee

The ESG Committee strengthens the ESG management system at the BOD level by reviewing the company's ESG management strategy and direction, regularly checking performance, and making improvement plans. In setting business management strategies and goals for ESG-related activities, the committee considers environmental management and CSR management policies, and reviews and implements detailed action plans. Notably, it deliberates and provides advice on issues such as implementing Net Zero, managing climate change response risks, establishing eco-friendly business directions, and managing greenhouse gas emissions to actively review the performance of environmental management activities at the BOD level. The committee also identifies ESG risks and opportunities throughout the business’s value chain of the business, and establishes and executes frameworks to respond to them.

The Planning Management Part and ESG Part, which are operational departments for ESG management, conduct materiality assessments to identify the company's sustainability issues, impacts, risks, and opportunities, and report best practices and improvement plans to the ESG Committee. They also collaborate with relevant departments in the environment, social, and governance areas to establish and implement improvement initiatives for each issue and share the results with the ESG Committee.

ESG Committee Activities*

SessionDateAgendaResolution Type
23-12023.01.16Reporting on the business plan for 2023Reported
23-22023.03.22ESG management operation direction and key improvement tasks for 2023
23-32023.07.12Measures to enhance corporate value
23-42023.08.07Follow-up measures to enhance corporate value
23-52023.08.31Reporting on ESG materiality and information disclosure
Reporting on the establishment of a human rights management system
Reporting on environmental management and climate change response
24-12024.01.19Reporting on the business plan for 2024
Review of ESG management in 2023 and plan for 2024
  • *As of Apr. 1, 2024

HR Committee

The HR Committee, also known as the Nomination and Compensation Committee, reviews the evaluation and retention of the CEO, assesses the appropriateness of executive directors' remuneration, and receives reports on the evaluation and remuneration of key executives, integrating the functions of the Remuneration Committee. The HR Committee also evaluates the CEO's management activities and performance, and checks the implementation of KPIs by the CEO and key executives to support management in carrying out its responsibilities in ESG management.

HR Committee Activities*

SessionDateAgendaResolution Type
23-12023.02.02Reporting on remuneration of executive directorsReported
Reporting on the establishment of CEO KPIs (draft)
23-22023.08.18Mid-term review of CEO KPIs
Mid-term review of key executives’ KPIs
23-32023.10.23Improvement of CEO remuneration system
23-42023.11.22Reporting on assessment results of key executives
CEO assessment (draft)
23-52023.11.23Decision on CEO retention
24-12024.01.23Reporting on remuneration of executive directors
Reporting on the establishment of CEO KPIs (draft)
Reporting on remuneration of key executives
  • *As of Apr. 1, 2024

Audit Committee

The Audit Committee oversees all aspects of auditing, including auditing financial statements, appointing external auditors and evaluating the operational status of internal accounting management, as well as performing management oversight functions for ethical and anti-corruption management. To maintain independence, the committee comprises three independent directors, each meeting the qualifications stipulated in the Commercial Act, with the chairperson appointed from experts in accounting and finance. Moreover, the committee conducts training sessions on laws related to external audits and the Internal Accounting Control System at least once a month to enhance its audit expertise. The Internal Control Part supports the operational activities of the Audit Committee and maintains regular communication with external auditors to ensure effective operations.

Audit Committee Activities*

SessionDateAgendaResolution Type
23-12023.02.23
  • Reporting on the results of the 2022 fiscal year audit by external auditors
  • Reporting on the internal audit results for 2022 and plans for 2023
  • Reporting on the operation status of the Internal Accounting Control System for 2022
Reported
23-22023.02.28
  • Confirmation of opinions on the agendas and document reviews for the 19th AGM
  • Pre-determination of the order for acting as chair of the Audit Committee at the AGM
  • Confirmation of the evaluation report on the operation status of the Internal Accounting Control System for 2022
  • Confirmation of the Audit Committee's audit report
Voted
23-32023.04.26
  • Reporting on audit quality assessment by the external auditor for the previous year
  • Reflecting on performance evaluation regarding deficiencies in the Internal Accounting Control System for 2022
  • Reporting on the inspection plan for the operation status of the Internal Accounting Control System for 2023
  • Reporting on the work plan of the Audit Committee for 2023
  • Reporting on the eligibility of the newly appointed internal accounting manager
  • Reporting on the consecutive appointment of the chair of the Audit Committee
Reported
23-42023.05.04
  • Reporting on the review results of the external auditor for the first quarter of the 2023 fiscal year
Reported
23-52023.06.21
  • Reporting on the completeness of financial statement preparation and improvements in the accounting closing process
  • Follow-up report on reflecting performance evaluation regarding deficiencies in the Internal Accounting Control System for 2022
  • Reporting on the details of services provided by the accounting firm (including non-audit services provided by the external auditor)
Reported
23-62023.08.18
  • Reporting on the review results by the external auditor for the first half of the 2023 fiscal year
  • Reporting on the results of change management and design evaluation of the Internal Accounting Control System for the 2023 Fiscal Year
Reported
23-72023.09.25
  • Reporting on the results of the semi-annual internal audit and ethical management activities
  • Reporting on the profit and loss management process
  • Reporting on non-audit services by the external auditor
Reported
23-82023.10.26
  • Reporting on the evaluation progress of the first operation of the Internal Accounting Control System
  • Self-evaluation of the Audit Committee
Reported
23-92023.11.20
  • Reporting on the review results by the external auditor for the third quarter of the 2023 fiscal year
Reported
  • Reflecting on the performance evaluation of the Internal Accounting Control System
  • Request for approval of contracting with an accounting firm and conditional amendment (upon spin-off) of appointing external auditors for 2024
Voted
23-102023.12.19
  • Reporting on the fund management process
  • Reporting on the results of the self-inspection of the self-regulation system
  • Reporting on the review of non-audit tasks
Reported
24-12024.01.16
  • Confirmation of opinions on the agendas and documents for the 1st special general meeting of shareholders in 2024
  • Pre-determination of the order for acting as chair of the Audit Committee at the 1st special general meeting in 2024
Voted
24-22024.02.26
  • Reporting on the audit results for the 2023 fiscal year by external auditors
  • Reporting on the operation status of the Internal Accounting Control System for 2023
  • Reporting on the internal audit results for 2023 and plans for 2024
Reported
24-32024.02.28
  • Confirmation of opinions on the agendas and documents for the 20th AGM
  • Pre-determination of the order for acting as chair of the Audit Committee at AGM
  • Confirmation of the evaluation report on the operation status of the Internal Accounting Control System for 2023
  • Confirmation of the Audit Committee's audit report
Voted
  • *As of Apr. 1, 2024

Independent Director Recommendation Committee

The Independent Director Recommendation Committee operates with all members being independent directors, in accordance with relevant commercial laws and the company's Independent Director Recommendation Committee Regulations, to ensure fairness and independence in the appointment of independent directors and the committee's operations. The committee holds the authority to recommend candidates for independent directors to be appointed at the shareholders' meeting. It conducts prior deliberation and verification of candidates' disqualifications and expertise for selecting independent director candidates, ensuring they have no significant conflicts of interest with the company (including affiliated companies).

Independent Director Recommendation Committee Activities*

SessionDateAgendaResolution Type
24-12024.02.28Proposal to nominate an independent director (Nominee: Mo-doom Kim)Voted
Proposal to nominate an independent director to serve as an Audit Committee member (Nominee: Jun-cheol Kim)Voted (Jun-cheol Kim is restricted from voting due to being a candidate)
  • *As of Apr. 1, 2024

Board Assessment and Remuneration

Board Assessment

SK D&D conducts annual assessments of the Board of Directors and its committees through the Board Secretariat to enhance governance transparency. The assessment of the Board is carried out using a self-assessment method limited to independent directors, covering five areas: Board composition, operations, responsibilities, roles, and committees. Assessment results are reported to the Board annually, guiding the identification of improvement areas for the following year based on the Board's performance. These results are also disclosed to external stakeholders through the business and sustainability reports.

In 2023, assessments were conducted on three individual independent directors, revealing improved scores compared to the previous year in the areas of "Board Composition", "Board Operations", "Board Responsibilities", and "Board Roles” with an overall average score rising to 4.94 out of 5. Based on these findings, we aim to implement activities such as establishing and refining Board-related regulations and aligning them with compensation.

Board Assessment Process

Board Assessment Items

CategoryAssessment Items
Board CompositionAppropriateness of size, expertise/experience of directors, independence
Board OperationsAppropriate number of meetings held, timeliness of agenda, usefulness of management materials, directors’ attendance, adequacy of discussions, provision of training, information collection
Board PerformanceResponsibilitiesEstablishment of corporate vision and strategies, appropriateness of the scope of its mandate, management advisory, corporate value improvement, risk management
RolesOversight of management performance, obligation of confidentiality, corporate governance, corporate social responsibility
Committee ActivitiesCommittees and their membership, division of roles and responsibilities, number of meetings held, timely provision of information and materials, sufficient engagement in discussions

Board Assessment Results

CategoryUnit202120222023
Board CompositionPoints4.834.925.00
Board OperationsPoints4.624.804.94
Board PerformanceResponsibilitiesPoints4.814.804.94
RolesPoints4.564.884.90
Committee ActivitiesPoints4.685.004.94
Overall average*Points4.704.894.94
  • *Based on a 5-point scale

Board Remuneration

Directors' remuneration is determined by comprehensively reflecting their positions (roles), expertise, and contributions to the company within the director remuneration limits approved by the General Meeting of Shareholders. Performance bonuses are paid based both on quantitative metrics, such as sales and operating profit, and on qualitative metrics, such as the achievement of strategic goals and leadership. For executive directors, non-financial performance is included within the KPIs to determine the final amount of remuneration.

Remuneration for Directors in 2023

CategoryUnitExecutive DirectorIndependent Director*Audit Committee Member
Total number of personnelPersons113
Total remunerationKRW 1 million1,26789294
Average remuneration per personKRW 1 million1,2678998
  • *Independent director: excluding members of the Audit Committee

CEO-to-Employee Remuneration Ratio

CategoryUnit202120222023
CEOTotal annual remunerationKRW 1 million1,8521,5021,267
Employee*Average remunerationKRW 1 million105105110
CEO-to-Employee remuneration ratioTimes17.614.311.5
  • *Excluding executive director (CEO)

KPI Assessment for the CEO and Management

SK D&D incorporates ESG management items established based on ESG materiality reviewed by the ESG Committee into the KPIs for all executives, including the CEO, alongside financial, strategic, and operational indicators. C-Level KPIs are established annually, incorporating ESG performance from the previous year, and are finalized in January of the subsequent year, following review by the HR Committee and approval by the Board of Directors. To drive KPI achievement, quarterly and interim performance checks are conducted, and compensation for the following year is linked to KPI performance after final assessment.

In 2023, SK D&D set CEO KPIs including tasks such as implementing the ESG Master Plan, innovating organizational culture, enhancing workplace safety management, and achieving zero significant accidents across all workplaces. For executive KPIs, goals were set to promote ESG internalization and ecosystem expansion in alignment with each executive's overall operational business. Based on these goals, we assess CEO and executive KPI achievement levels and incorporate these results into compensation decisions to strengthen management's sense of responsibility for creating social value.

CEO & Executives KPI Assessment·Remuneration Decision Process

2024 CEO KPIs

CategoryTasks
ESG
  1. 1. Implement ESG master plan
    • Environment: Implement RE100 group-wide
    • Social: Operate a win-win model align with SK D&D business
    • Governance: Advance board-driven ESG performance management
  2. 2. Advance business utilizing DT/IT and improve work environment
  3. 3. Achieve innovations in the organizational culture
  4. 4. Enhance workplace safety management and achieve zero serious accidents at all workplaces
Strategy/OperationEnhance PJT management level, strengthen business model competitiveness, establish sustainable business structure, plan new business, and secure investment resources
Financial affairsGroup-wide P&L, profit margin, enterprise value