Shinhan Financial selects first-round candidates for next Shinhan Bank, Jeju Bank chiefs

Shinhan Financial has selected a first-round pool of candidates for the next heads of Shinhan Bank and Jeju Bank. Starting this year, the nomination committees at each bank will directly recommend candidates and weigh in on the final selection, expanding the role of subsidiary boards in the process.

The Subsidiary CEO Candidate Recommendation Committee of Shinhan Financial held a meeting Tuesday to deliberate on candidates for subsidiary chief executives whose terms expire at the end of this year, the group announced Wednesday.

The committee selected a first-round candidate pool for the two bank chief positions at two to three times the size of the final shortlist. It plans to narrow the pool through additional deliberations next month before conducting in-depth interviews and assessments to make a final recommendation in early December.

This selection cycle marks the first time a procedure has been introduced in which each bank's nomination committee independently reviews and recommends candidates to the group-level committee. The group committee launched the succession process on Sept. 21 and shared information on succession candidates with each bank's nomination panel.

Each bank's nomination committee established qualification requirements for the next bank chief based on the internal and external business environment and future strategic direction, then reviewed and recommended candidates with the relevant capabilities and experience. The group committee examined the candidates and views submitted by each bank to form the first-round pool.

A new arrangement was also introduced in which the chair of each bank's nomination committee will participate in the group committee meeting where the final candidate is chosen. The bank nomination committee chair will present the results of deliberations to date and offer views on the final selection.

The move ensures that each bank's nomination committee is involved from the initial candidate recommendation through to the final selection, with the aim of giving bank-level management priorities and on-the-ground judgment a greater voice in the group's appointment process.

A Shinhan Financial board official said the newly introduced procedure — in which bank nomination committees recommend candidates for the bank chief position — "will serve as an opportunity to strengthen the independence and accountability of subsidiary boards," adding that the group committee and subsidiary nomination panels "will work closely together to establish a fair and transparent succession framework."

Meanwhile, the committee also finalized the review criteria for chief executive candidates at 10 subsidiaries, including Shinhan Bank. Those ultimately recommended will go through review by each subsidiary's nomination committee and approval by the board and shareholders, with their terms set to begin in January.