Samsung Electronics to Unveil DS Unit Special Performance Bonus Criteria After Chuseok

Employees of Samsung Electronics' semiconductor (DS) division will learn the calculation method and payment criteria for the special management performance bonus (an additional performance bonus) in the last week of September, after the Chuseok holiday ends. The program was newly created during this past May's labor-management wage negotiations and is separate from the existing overtime pay incentive (OPI). The Samsung Electronics chapter of Samsung Group's first labor union recently notified members of this schedule, industry sources said on the 24th.

Labor and management agreed to fund the special management performance bonus with 10.5% of the DS division's operating profit, with no separate cap on the payment amount. Payments will be made entirely in the company's own shares on an after-tax basis. Forty percent of the funds will be allocated across the entire DS division first, with the remaining 60% divided among its individual business units. One-third of the allocated shares can be sold immediately, while the remainder is subject to sale restrictions for one and two years, in equal halves.

Assuming Samsung Electronics posts 300 trillion won in operating profit this year, an employee in the DS division's memory business unit is estimated to receive roughly 550 million won worth of special performance bonus shares under the new program, plus up to 50 million won in OPI — a total of about 600 million won per person.