Minority Shareholders Urge National Pension Service to Review Approval of Samsung Electronics' Semiconductor Performance Bonuses

Minority shareholder platform FaaS has requested the National Pension Service (NPS), the second-largest shareholder in Samsung Electronics, to review the legal nature and necessity of shareholder approval regarding the DS division special performance bonus agreed upon by the company and labor union. FaaS pointed out that the bonus is linked to operating profit, creating an asymmetrical structure where shareholders bear the risk of stock price declines. FaaS CEO Lee Sang-mok argued that shareholder approval is required for profit distribution on the scale of tens of trillions of won annually.

The agreement outlines allocating 1.5% of business performance to existing Operational Profit Incentive (OPI) funds, while designating an additional 10.5% of business performance as a separate bonus resource for the DS division. The special management performance bonus will apply for 10 years without a cap on payments.

The letter was signed by 696 Samsung Electronics shareholders holding a total of 377,526 shares.