The article reports that Samsung Electronics has decided that, starting this year, its executives must receive at least 50% of their excess profit incentives (OPI) in company stock. This move is seen as a strong commitment to responsible management amidst falling stock prices. From 2026, this stock incentive option will also be available to employees.
According to the announcement made internally on the 17th, executives are required to receive a portion of their OPI bonus in company shares based on their position: at least 50% for managing directors, 70% for vice presidents, and 80% for presidents, while registered executives will receive 100% of their OPI in shares.
Additionally, if the stock price drops one year later, the number of shares granted will be reduced by the same percentage as the decline. For example, if the stock price falls by 10%, executives will receive only 90% of the originally agreed shares. This means a decline in stock price effectively results in the executives returning part of their bonuses.
The ongoing drop in Samsung Electronics’ stock, partly due to poor performance in the semiconductor sector, is seen as the reason for directly linking executive bonuses to stock performance as part of strengthening responsible management. This also aligns with the company’s intent to enhance focus on stock price management and clarify executive goals, thus promoting shareholder-centered management.
The new stock remuneration system for employees will be introduced next year, with participation being optional for them. Unlike for executives, any reduction in the number of shares due to a decline in stock price will not be considered for employees.
Currently, Samsung Electronics’ stock, which had risen to 88,000 won last year, has fallen to 53,300 won. The company is set to announce its confirmed earnings for the fourth quarter of last year on January 31st.