On December 17, Dongfang Selection dismissed Sun Dongxu as chief executive officer, and the company's internal management problems became more and more prominent. Yu Minhong said in public that the company's management team failed to adjust its thinking in time and relied too much on the traditional model, resulting in excellent employees being bound by traditional thinking. He stressed that this is a shock and change caused by the inadaptability of the management model.
After the personnel adjustment, Yu Minhong became the new CEO of the company, shouldering the arduous task of revitalizing Oriental Selection. The trust of the Board of Directors has led him not only to serve as Chairman, but also as Executive Director. This important responsibility seems to mean that the company has a high degree of recognition of Yu Minhong's leadership style, and may also be confidence that he can recover from the company's crisis.
The company announced the resignation of Son Dong-wook, making clear its concerns about brand and reputation management. Behind this decision, the pressure of public opinion cannot be ignored. The recent turmoil may have a long-term negative impact on the company's image, and the board of directors has had to weigh the balance between the company's image and individual responsibility.
In the announcement, the board of directors said that Sun Dongxu's resignation will better safeguard the interests of the company's shareholders. It is also a response to skepticism and an attempt to stabilize the company's shareholder confidence through management changes. How to balance the company's image and shareholders' interests under the pressure of public opinion will be an important challenge for the management in the future.
Sun Dongxu's high-value arbitrage behavior in February this year attracted widespread attention, and he cashed out HK$217 million in two days. To a certain extent, this behavior has affected the market's confidence in the company's sound operation. According to the financial report released by the company, as of May 31, 2023, Sun Dongxu's annual salary is RMB 16.391 million. However, such financial arbitrage behavior may further raise investors' concerns about the company's future and increase uncertainty about the company's future development.
The personnel changes of Dongfang Selection have intertwined many aspects such as internal management issues, public opinion turmoil, shareholders' interests and financial status. Behind the change, there are both challenges and opportunities. The redistribution of the company's power structure seems to be aimed at better adapting to changes in the market and solving internal management problems, but whether it will succeed is still unknown.
The negative impact of public opinion on the company's image will be a long-term repair journey. Companies need to regain the trust of the market and investors through transparent communication and substantial change. In this process, how to balance the interests of shareholders, maintain the company's image and solve internal problems will become the key issues that the management needs to consider carefully.
The whole incident has also raised concerns about corporate governance and internal control mechanisms. For investors, they are more concerned about whether the company will be able to rise to prominence and whether the new management will be able to effectively respond to the challenges ahead. All this will be gradually revealed in the future development.