The cash returns will include a 30 percent increase in its total dividend this year, a continuation of the share buyback programme from January 2017, and the introduction of quarterly dividend payments from April 2017.
Samsung Electronics Co Ltd said on Tuesday it is reviewing options for its optimal corporate structure including the possibility of establishing a holding company amid growing calls for improved transparency and governance.
In recognition of the ever more global nature of Samsung Electronics business, the company's board of directors is pursuing plans to invite new independent board members with worldwide corporate experience.
Samsung will consider splitting itself into two as proposed by US activist hedge fund Elliott Management, Seoul Economic Daily reported on Monday citing an unnamed source.
The process is expected to take as long as six months, and "the review does not indicate the management or the Board's intention one way or another", Samsung said.
The suggestion initially came from the hedge fund Elliott Management with the aim of increasing shareholder value.
While the statement was bit underwhelming-company shares remained flat afterwards-it did mark the first time that Samsung officially announced a possible shift to a holding company set-up.
Turkish PM threatens to reopen borders to migrants
The vote is non-binding, but represents a dramatic ahead of a crucial meeting of European Union ministers next month. "It wouldn't matter if all of you approved the vote", he said at a women's congress in Istanbul.
The move would, the investors argued, improve corporate governance and unlock shareholder value, with the holding firm becoming the main ownership vehicle (paywall) for the family of Samsung Group chairman Lee Kun-hee.
New shareholder return plans would also follow a tightening of control by de facto Samsung Group leader Jay Y. Lee, who took over the reins after his father and Samsung patriarch was incapacitated following a May 2014 heart attack.
The electronics giant also had its headquarters raided multiple times, thanks to a corruption probe involving South Korean president, Park Geun-hye. A boost in 2016 payouts fell short of some investors' expectations while uncertainty over the restructuring kept investors at bay, analysts said.
It's not just the Galaxy Note 7 that has put Samsung in a tough spot.
Under pressure from an activist investor, South Korean tech giant Samsung Electronics is considering splitting itself into two companies, according to a new report.
Samsung had previously sold the non-core assets, while it also pushed through the merger of affiliate entities in 2015, which were being controlled by an company run by Jay Y.Lee and his sisters.