'Annual Salary 80 Million KRW' LG Electronics Home Appliance Manager to Receive Up to 30 Million KRW in Performance Bonus

Basic salary set up to 750% based on division performance and operating profit targets
Payment on the 26th... Divisions missing targets receive encouragement bonuses of 1 to 3 million KRW

LG Electronics Building in Yeouido, Seoul
[Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] LG Electronics has finalized performance bonuses reaching up to 750% of the base salary.

On the 16th, LG Electronics announced that it had confirmed the 2020 management performance bonuses through consultations with the labor union and informed its members via company bulletin boards and division-specific briefings.

The performance bonuses, scheduled to be paid on the 26th, were determined differentially by each business division based on basic indicators such as the achievement of annual sales and operating profit targets, as well as goals related to competitive conditions within the same industry.

The business division receiving the highest performance bonuses is the Home Appliance & Air Solution (H&A) division, which achieved record-high results last year. Specifically, the Kitchen Appliance division, responsible for refrigerators and dishwashers, and the Living Appliance division, overseeing washing machines, dryers, and stylers, will receive the highest rate of 750%. This is the highest ratio ever recorded in LG Electronics' performance bonus history.

For example, a manager-level employee in the Kitchen Appliance or Living Appliance divisions with an annual salary of 80 million KRW will receive a pre-tax performance bonus of 30 million KRW. Additionally, the Parts Solution division will receive 610%, and the Air Solution division, handling air conditioners and related products, will receive 600%.

In the Home Entertainment (HE) division, responsible for TVs and other products, the TV and Audio-Video (AV) sectors will receive 200%, while the Home Beauty sector will receive 100%. Although the HE division met its operating profit target last year, it failed to meet the sales target set at the beginning of the year and goals related to competitive conditions, resulting in a lower-than-expected performance bonus rate. Other divisions include the Headquarters receiving 300% and the Business Solution (BS) division receiving 350%.

On the other hand, the Mobile Communications (MC) division and the Vehicle Solutions (VS) division, which recorded losses last year, as well as some departments within the BS division that fell short of targets, will not receive performance bonuses but will be given encouragement payments ranging from 1 million to 3 million KRW by each organization in early next month.

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