Korean Air shareholders have voted chief executive and chairman Cho Yang-ho off the carrier’s board.
Disclosures show that 64.1% of attendees at the SkyTeam airline’s annual shareholders meeting backed a proposal by the carrier to renew Cho’s board term for three years, just short of the two-thirds majority required.
South Korea’s National Pension Service, which is the second largest shareholder in the carrier, had indicated the day before the meeting that it would vote against extending Cho’s board tenure.
The failure of the proposal forces Cho out of a board that he has been on for 27 years, but Korean Air says that it will not affect his positions as chairman and chief executive of the company.
Cho’s son and the airline’s president, Walter Cho Won-tae, remains on the board, while the family controls Korean Air’s parent company, Hanjin KAL group.
The senior Cho was indicted in October on allegations that he embezzled funds from the airline by awarding lucrative contracts to companies linked to the family. He was also charged with breach of trust.