Samsung links employee bonuses to company shares amid chip industry crisis
Samsung is going through one of the most difficult periods in its history due to problems in its memory and semiconductor chip business, which has led to a sharp drop in the company's share price. Because of this, the South Korean firm has decided to tie employee bonuses to the company's stock performance.
Here's What We Know
According to the report, the equity portion of the annual bonus will range from 50 per cent to 100 per cent, and the percentage will increase depending on seniority. Previously, bonus compensation was paid in cash. Now, if the company's performance drops, employees will get fewer shares and the value of these shares will also drop depending on the stock price.
Samsung will also restrict its employees from selling shares for 1-2 years based on their level. This new way of bonus compensation will start this month and will be limited to executive level employees. Non-executive level employees will also reportedly receive this system starting in 2026.
Source: Bloomberg
