SK Hynix "Pay Performance Bonuses Using 10% of Operating Profit"... Details of Agreement Finalized

SK Hynix Headquarters Main Gate in Icheon, Gyeonggi-do
[Image Source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] SK Hynix, which faced turmoil over performance bonuses, has decided to calculate the Profit Sharing (PS) given to its members based on operating profit and to use 10% of the profit as the funding source for the payments.

SK Hynix announced that on the 10th, the labor and management held a Central Labor-Management Council meeting at the headquarters in Icheon, Gyeonggi Province, and finalized the detailed plan for the previously agreed performance bonus improvement measures.

On the 4th, SK Hynix labor and management agreed to abolish the existing PS standard of EVA (Economic Value Added) and link the standard to operating profit, while simultaneously issuing employee stock ownership equivalent to 200% of the base salary. Through this additional agreement, they specified that 10% of operating profit will be used as the PS funding source. The company will also disclose the expected PS payment amount at the beginning of the year and quarterly, so that members can predict how much they will receive early next year.

The employee stock ownership equivalent to 200% of the base salary can be received either ▲ free of charge with a mandatory holding period of 4 years or ▲ purchased at a 30% discounted price, with the member choosing between these options. The company plans to support loans for members who purchase the employee stock at the discounted price.

SK Hynix stated that it will hold an employee stock ownership briefing session for members next month and transfer the shares after board approval in early April.

This content was produced with the assistance of AI translation services.