Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 314

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 314
---
 the affiliated company over a four-year operating period commencing from the date of grant. Upon the conclusion of this operating period, cash payments will be made to the holders based on the stock price of the Group at that time. No performance shares have been granted to outside directors. In 2024, we recognized W16.4billion as accrued expenses for performance shares. Under the Financial Supervisory Service’s standards for preparing corporate disclosure forms, which standards were amended in December 2016, we are required to disclose in our Korean annual report the individual annual compensation (including stock options) paid by us to our directors and statutory auditors if the individual annual compensation for such persons is W500 million or greater. In 2024, Jin Okdong, our Chief Executive Officer, received W1,522 million, consisting of salaries and wages. In addition, in 2024, Mr. Jin was granted 23,587 performance shares. The exercisability of these performance shares will be determined based on a review of our business performance and share price movements during four years, beginning with the fiscal year in which such shares were granted. The Group determines annual incentive compensation by conducting performance evaluations. Performance measures include quantitative measures, such as total shareholder return, profitability, risk-adjusted return, nonperforming loan ratios before sales and write-offs and efficiency ratios, as well as qualitative measures such as the achievement of pre-establishedstrategic initiatives. The Group determines long-term incentive compensation by conducting performance evaluations over a four-year period. Performance measures include quantitative measures, such as the relative stock price performance, adjusted ROE/ROTCE and non-performingloans ratio. The maximum number of performance shares that may be granted to directors of the board of the Group in respect of the fiscal year 2024 has been set at 30,000 shares in the aggregate.

| ITEM 6.C. | Board Practices |

Board of Directors Our board of directors, which currently consists of one executive director, one non-executivedirector and 9 outside directors, has the ultimate responsibility for the management of our affairs. Our Articles of Incorporation provide for no less than three but no more than fifteen directors, the number of outside directors must be more than 50% of the total number of directors, and we must maintain at least three outside directors. All directors are elected for a term not exceeding three years as determined by the shareholders’ meeting, except that outside directors are elected for a term not exceeding two years, provided that the term of re-electionshall