"Stock prices are falling, and they want 600 million won in bonuses?" Angry Samsung Electronics retail investors send a letter to NPS

[Financial News] Samsung Electronics retail investors delivered a shareholder letter to the National Pension Service (NPS) on the 20th to block a special management performance bonus for the semiconductor division.
Act, a retail investor platform, visited the NPS Chungjeongno building in Seoul at 4 p.m. that day and submitted a shareholder letter to the head of fiduciary responsibility at NPS, urging the service to address concerns over Samsung Electronics' special management performance bonus agreement and to fulfill its fiduciary duty. NPS is a shareholder that holds 7.9% of Samsung Electronics' shares.
The letter included signatures from 696 people, representing 377,526 shares, who had verified by the 19th that they were actual Samsung Electronics shareholders through MyData integration.
In the letter, Act said that if Samsung Electronics' existing Performance Incentive (OPI) and the semiconductor division's special management performance bonus are combined, about 12% of the division's business performance would be set aside as bonus funds. It argued that although the payment is called a "bonus," it is effectively a distribution of company performance, or profits that belong to shareholders, based only on an agreement between management and labor, and therefore should go through approval at the shareholders' meeting.
It also explained, "This year's estimated stock-based bonus payment is expected to exceed the limit on treasury stock disposal approved at the regular shareholders' meeting," adding, "This issue is directly linked to the Companies Act's requirement for shareholder approval regarding the holding and disposal of treasury shares."
Act pointed out that if the agreement on the OPI and the special management performance bonus is finalized and implemented without approval from the shareholders' meeting, it could dilute shareholder value and increase uncertainty in capital allocation policy. It added that this could ultimately have a negative impact on the long-term profitability of Samsung Electronics shares held by NPS.
The group also stressed, "NPS should formally place the legal nature of Samsung Electronics' OPI and DS special management performance bonus agreement, as well as the need for shareholder approval, on the agenda of the fiduciary responsibility committee for review." It also requested a meeting between the Samsung Electronics retail shareholder coalition Act and the fund management headquarters.
Finally, Act said, "This letter was not written to restrict NPS's investment judgment or its own authority, but out of a desire for a rational decision-making process that can protect both the public's retirement savings and the interests of ordinary shareholders."
Samsung Electronics has introduced a special management performance bonus for the semiconductor division, funded by 10.5% of operating profit. The bonus will be paid in treasury shares over the next 10 years.
[email protected] Ahn Ga-eul Reporter