Coupang Stock Options Boom? 'Rich Get Richer, Poor Get Poorer' Phenomenon Expected to Appear

As of the end of last year, 65,703,982 shares
Total capital gains around 2.4 trillion won
Few original employees remain since founding
Benefits concentrated among high-salary executives

[Asia Economy Reporter Kim Bo-kyung] As Coupang makes its debut on the U.S. stock market, attention is focused on the stock option "jackpot," but it appears that only a very small number of employees will gain profits close to hitting the jackpot. Delivery workers (Coupang Friends) on the front lines have short tenures and it is unclear whether they have been granted stock options, so it is expected that only executives with annual salaries in the hundreds of millions of won will benefit, showing a "rich get richer, poor get poorer" phenomenon.

According to the industry on the 12th, as of the end of last year, Coupang employees have been granted a total of 65,703,982 stock options since the company's founding until last year. The average exercise price is $1.95 (about 2,200 won). A stock option is the right to purchase company shares at a predetermined price regardless of the market price. Considering Coupang's IPO price of $35 per share (about 40,000 won), exercising stock options can yield significant profits. This means being able to buy one share priced at $35 for an average of $1.95. The total market gain from all issued stock options by Coupang amounts to $2.17 billion (about 2.4 trillion won).

However, the prevailing analysis is that the beneficiaries will be limited to some senior executives. Employees who joined Coupang in its early days may hold a considerable number of stock options at prices lower than the average exercise price, but considering Coupang's high turnover rate, it is unlikely that many of those early employees remain with the company. Recently hired employees have been granted fewer shares and may have chosen cash instead of stock options when receiving bonuses. Coupang has not disclosed the number of employees who have received stock options.

Last month, Coupang announced a plan to distribute stocks worth a total of 100 billion won to employees including Coupang Friends, which is not included in the 65,703,982 stock options disclosed in Coupang's IPO prospectus. Coupang has about 50,000 employees, so each will receive stocks worth approximately 2 million won. These stocks come with conditions: 50% can be received after one year of service, and 100% after two years. Coupang has also remained silent about the number of shares or the value per share that corresponds to the 2 million won benchmark.

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