Samsung Display to Introduce Pay-for-Performance Compensation System Similar to Samsung Electronics

According to Financial News, Samsung Display is set to introduce a Pay-for-Performance Compensation System similar to that of Samsung Electronics.
Industry sources reported on the 9th that Samsung Display posted an internal announcement regarding the Performance Share Unit (PSU) compensation scheme the previous day. Under the PSU system adopted by Samsung Electronics, Samsung Display employees will receive an amount equivalent to stock compensation, distributed evenly over three years starting in 2028.
Samsung Electronics has introduced a system in which employees receive company shares based on the increase in share price over the next three years. Staff (CL 1~2) will receive 200 shares, while managers to senior managers (CL 3~4) will receive 300 shares each. After three years, depending on the share price increase, up to twice the promised number of shares may be granted.
Unlike Samsung Electronics, Samsung Display employees will receive a cash equivalent instead of company shares. The maximum payout is 10.2 million KRW, distributed over three years.
The PSU system implemented at both Samsung Electronics and Samsung Display is structured so that the compensation amount is proportional to the share price increase. If the share price increases by less than 20%, the multiplier is 0; between 20% and 40%, the multiplier is 0.5; between 40% and 60%, the multiplier is 1; between 60% and 80%, the multiplier is 1.3; between 80% and 100%, the multiplier is 1.7; and if it exceeds 100%, the multiplier is 2.
If, after three years, Samsung Electronics' share price is more than double the base share price (85,385 KRW), the compensation will also be doubled. If the increase is less than 20% or between 20% and 40%, employees will receive either no shares or only half the promised amount. This rule also applies to Samsung Display employees.
Additionally, Samsung Display employees must meet a target operating profit. If the average operating profit for the next three years (2026–2028) exceeds the average of the previous three years (2023–2025), they will receive the same amount as Samsung Electronics employees. If the average falls short, the payout will be proportional to the achievement rate, and if it is below 50%, no performance compensation will be given.
soup@fnnews.com Im Soo-bin Reporter