Samsung Replaces Older Execs with Younger Ones

Terry Olaes

Terry Olaes

I Used to be the [H] News Guy
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Korean giant Samsung suddenly went younger and replaced twenty-five senior executives, all of whom were over 60, with younger execs. I guess age discrimination isn’t a big deal there.

[Samsung] said all of its top executives aged over 60 were replaced, except for two presidents who were promoted to vice chairman... "Age was the biggest criteria in the reshuffle," Yoon Soon-bong, Vice-Chair of the Samsung Group was quoted as saying at a press briefing.
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No one cries Age-ism?


Who did the "reshuffle" if these guys were the execs? No way they voted for it?
 
mdameron said:
No one cries Age-ism?


Who did the "reshuffle" if these guys were the execs? No way they voted for it?
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Well, they aren't based in the US... So my guess is discrimination isn't the legal nightmare like it is in the US than it is in S Korea.


IMO this is good. Some of your older execs are so out of touch with what consumers, employees, and reality calls for. *Usually* your older execs also just plain and simple dislike changes... New blood to the table is usually always a good thing.
 
TechieSooner said:
New blood to the table is usually always a good thing.
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I'm not supporting one side or the other, but Obama is a good example. He's a younger-ish guy, new ideas.

In-game advertising in video games? Embraces technology? Cares about College Football's ranking system?

Always good to get someone younger that's a little more in touch with what folks care about.

Again, that's just one aspect of Obama. Lots of other angles, so I'm not supporting him one way or the other by saying that. It's an angle lots of American people saw and liked.
 
TechieSooner said:
I'm not supporting one side or the other, but Obama is a good example. He's a younger-ish guy, new ideas.

In-game advertising in video games? Embraces technology? Cares about College Football's ranking system?

Always good to get someone younger that's a little more in touch with what folks care about.

Again, that's just one aspect of Obama. Lots of other angles, so I'm not supporting him one way or the other by saying that. It's an angle lots of American people saw and liked.
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I'm just curious who were the bosses that did the reshuffle? I mean, these guys were bosses... did they vote to have themselves replaced? lol
 
mdameron said:
I'm just curious who were the bosses that did the reshuffle? I mean, these guys were bosses... did they vote to have themselves replaced? lol
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No idea, but it may have been the board.

Either that or they could have just been urged to retire, or face almost certain forced-out from the board.

The board doesn't always have to be executives in the company.
 
I support this completely. I think our US economy would not be as bad as it is if we had younger more forward thinking upper management in the tech industries. Speaking as a middle manager myself in the tech industry, it would be nice if when I talked to my bosses that they actually understood the tech they were peddling, what it takes to build it, and not just the "idea" of the tech.
 
Axiomatic said:
I support this completely. I think our US economy would not be as bad as it is if we had younger more forward thinking upper management in the tech industries. Speaking as a middle manager myself in the tech industry, it would be nice if when I talked to my bosses that they actually understood the tech they were peddling, what it takes to build it, and not just the "idea" of the tech.
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But there are always exceptions. A big one is Bob Lutz at General Motors. He's the main reason for the recent , probably too late, desuckification of their line-up. And he's older than dirt. Although living like he's 40 years younger than he is probably helps.

In the tech industry you will always have the people at the top not being a technically savvy as those in the middle. Good engineers for the most part make poor managers, something I've seen happen repeatedly. However, management in the tech industry, like most workers, skews younger than most other industries. It's one of the reasons it's not to blame for the current mess. Now look at the financial sector. Geezer lobbyists getting stupid legislation passed so the young newbs under the watchful eye of their corrupt geezer handlers can abuse the new deregulated environment and take us all with them. Big difference.

I think Samsungs problem was their leadership rose out a feudalistic/nepotistic business environment typical of Korea. Once you're a global success that can be a liability. I'm sure there is archaeological evidence somewhere that shows Korea invented the "good ole boys club."
 
This is not age-ism...this is how the culture deals with the aged. The execs probably did not lose their jobs just their position, but became what I think is called "window men" if I am remembering correctly...I'm unable to remember the exact word for translating. Traditionally older men who get demoted will get a desk with a decent window view and little work. They may be good adice givers for the up-and-coming execs...whether they see the demotion and position they now have as honorable is debatable. Generally they will continue this until retirement, so it's not as bad as laying off some 60 year old here...the Japanese and Koreans tend to take the previous work of the person into account and hold them in high regard, but acknowledge that times and needs change.
 
What godfetish says is true, I think. But that's because they have good positions in the company. There is a lot of age discrimination for work in Korea. For average people, it is very common to see people "retired" in their 50s because their companies find a dumb reason to lay them off, where after that, nobody wants to hire them.

Because of Korea's completely borked education system and horrible "retirement" system (quotes because it is unofficial), it's very hard for people in their 30s/40s to support their parents (who are very likely out of a job) and to support private education for their children (if I remember correctly, 85+% of people in Seoul send their kids to private after-schools). I think the average money spent per kid for an after-school in Seoul is about $250-350 a month, but some people easily put down $1000 a month for two kids. And I think the national average income is about $23k. Factor in 20+% tax and YOU ARE SCREWED.
 
I also forgot to note that the age discrimination thing has increased in the past few years ever since the IMF crisis back in the late 90s. The whole "loyalty to your employees" thing in Korea is a thing of the past, and is also increasingly so in Japan, I think. That's what bottom lines and crappy economic situations do to you
 
no you don't. The rail road industry and lots of businesses won't admit to age discrimination, but you can see it.
 
I honestly don't see the benefit of such a drastic move. They stamp plastic for a living...
 
25 Presidents and Vice Chairmen ?

Wow - I thought the board consisted of them ?
 
Odd, Circuit city fires people with X amount of years with the company people say that is bad. Samsung does it and everyone thinks it is a great idea.
 
Exavior said:
Odd, Circuit city fires people with X amount of years with the company people say that is bad. Samsung does it and everyone thinks it is a great idea.
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Circuit City is retail. Samsung is actually producing products.
 
Exavior said:
Odd, Circuit city fires people with X amount of years with the company people say that is bad. Samsung does it and everyone thinks it is a great idea.
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Circuit City got rid of the people who actually MADE money, not the corporate sponges who took their salaries as bonuses.
 
Discrimination of age is like discrimination of race, it is bad. When it comes to your job you should be based on one thing and one thing only; your performance. Making assumptions that an older person is out of ideas is simply ridiculous. Simply because someone is young does not mean they're over flowing with new brilliant ideas. Just as being old does not mean you're stale and over the hill. That is why the apparent "only" criteria of age is ridiculous to support.

Human kinds adherence to tradition is utterly ridiculous and stupid. It is mind blowing how it goes both ways and this example and for the worse in every way as well. Simply the blind leading the blind and because of that they never realize their mistakes. No sight of correction...
 
There's exceptions to every rule. However the vast majority of people that have been in the same post all their career DO get stale, dislike change, and dislike new ideas. Go look around any corporation.
 
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