As Samsung Electronics' prolonged stock slump continues, minority shareholders are moving to gather stakes to convene an extraordinary shareholders' meeting.

The agenda is expected to include not only large-scale treasury stock acquisitions but also changes to the executive and employee performance-based compensation system tied to operating profit, which has drawn criticism from shareholders.

According to the financial investment industry, minority shareholder platform Act initiated preliminary electronic signature procedures yesterday (August 3) to convene an extraordinary shareholders' meeting for Samsung Electronics.

The signature process has also officially begun.

The plan is to secure 3 percent of the total issued shares—the requirement for convening a meeting—by requesting delegations of the right to demand a meeting from the National Pension Service and domestic and foreign asset management companies, and then table agenda items for improving shareholder return policies.

The agenda is reportedly set to include a proposal to purchase and cancel 45.5 trillion won worth of common shares.

A recommendation-based shareholder proposal requiring the company to report the basis of judgment and implementation results when deciding on shareholder return measures will also be included.

In particular, the special management performance-based compensation promised to semiconductor employees is a core agenda item.

In May, Samsung Electronics' management and labor union agreed to establish a performance bonus funded by 10.5 percent of the semiconductor business's performance, to be paid in company shares after taxes.

Shareholders have criticized that mechanically linking bonuses to financial performance effectively pre-allocates the use of future profits through labor-management agreements before considering investment demand, financial conditions, and shareholder return capacity.

Minority shareholders argue that the impact of large-scale performance bonuses on corporate value and existing shareholder stakes must be separately reviewed at the shareholders' meeting.

This shareholder action is drawing attention as an attempt to directly dictate the use of cash and execution deadlines at an extraordinary meeting against a mega-cap listed company like Samsung Electronics.

The widening gap between corporate performance and stock prices is cited as the reason behind the shareholders' actions.

Samsung Electronics announced preliminary earnings for the second quarter of this year, recording 171 trillion won in revenue and 89.5 trillion won in operating profit.

First-quarter operating profit also reached 57.2 trillion won.

Although cash generation capacity surged due to favorable semiconductor market conditions, demands to accelerate shareholder returns have grown as stock price volatility expanded amid recent sharp market drops.

However, analysts note that significant hurdles remain before an extraordinary shareholders' meeting can actually take place.

Given that foreign investors account for 47 percent and domestic institutions 15 percent of common shares, observers point out that meeting the requirements will not be easy without active participation from retail investors.

(Reported by Kim Minjeong | Video by Lee Da-in | Graphics by Lee Jeong-ju | Produced by SBS Digital News)