Samsung Electronics’ DS special performance bonus: Memory division payout estimated at 750 million won...to be paid in March-April next year

[Financial News] Samsung Electronics has finalized the details of a special performance bonus for its Device Solutions (DS) division, which oversees its semiconductor business. The bonus will be funded by 10.5% of this year’s DS division operating profit and paid from late March to early April next year. The company also plans to pursue joint labor-management donations based on employees’ voluntary participation.
According to industry sources on the 7th, Samsung Electronics finalized and announced that day the detailed criteria for the special performance bonus, including the payment date, how the amount will be calculated, how it will be paid in company shares, and tax payments, to DS division employees.
The special performance bonus was established under a labor-management agreement in May and will be funded by 10.5% of this year’s DS division operating profit. It was previously agreed that 40% of the funds would be allocated across the DS division as a whole, with the remaining 60% paid out at different rates based on the performance of each business unit.
The bonus will be paid from late March to early April next year, after the company’s annual general meeting of shareholders. It will be paid in company shares after deductions for taxes, health insurance premiums and donations, and the shares will be subject to a sale restriction for a set period.
According to the union, the special performance bonus will be paid on a monthly prorated basis that reflects the actual period worked, as with the existing Excess Profit Incentive (OPI). Taxes will be withheld in advance based on the income tax rate, and the amount refunded is also expected to vary depending on each individual’s year-end tax settlement.
The Samsung Electronics Branch of the Super-Enterprise Labor Union (the enterprise union) also made its own estimates of payouts for each business unit, based on securities analysts’ forecast of about 370 trillion won in DS division operating profit this year. For an employee with an annual salary in the low 80 million won range, the estimated pre-tax payout, including the existing OPI, is about 750 million won for the Memory Business, about 530 million won for common organizations, and about 240 million won for the System LSI and Foundry business units. However, these are the union’s own estimates, and actual payouts may vary depending on this year’s DS division performance and other factors.
The company also plans to pursue joint labor-management donations linked to the special performance bonus. According to the enterprise union, employees may voluntarily pledge between 0.2% and 1% of their special performance bonus as a donation. Labor and management will match the amount on a one-to-one basis, and plan to continue discussions on details, including the donation recipients.
Choi Seung-ho, chair of the Samsung Electronics Branch of the Super-Enterprise Labor Union, said, “The chair and executive committee will lead by example and take part in the donation pledges, and we plan to encourage union members to participate as well. We will continue to consult with management on the donation recipients and how the funds will be administered.”
[email protected] Im Su-bin and Park Ji-yeon Reporter