SK On Grants Virtual Shares to Employees... About 30% of Annual Salary

SK On grants its employees virtual shares equivalent to about 30% of their annual salary.

According to industry sources on the 21st, SK On held a performance bonus briefing session for its employees in the afternoon and shared details about the 'Value Sharing' (VS) grant, a form of performance-based stock compensation. The amount of VS granted varies depending on individual performance, and it is known to average around 30% of the contracted annual salary.

Following last year's zero percent performance bonus due to losses, which raised employee dissatisfaction, this move is interpreted as an effort to attract top talent and encourage long-term retention of employees to strengthen mid- to long-term competitiveness.

VS is a type of virtual stock linked to SK On's corporate value. If an employee remains employed for three years from the grant date and SK On succeeds in going public (IPO), the virtual shares will be converted and paid out as actual shares on a one-to-one basis. However, if SK On fails to go public by 2027, the rights will expire.

Previously, from December 2022 to June 2023, SK On conducted a pre-IPO round, raising a total of approximately 4.8 trillion won from financial investors (FIs), including global private equity funds (PEFs). The company was valued at about 22 trillion won at that time. SK On promised investors to complete the IPO by the end of 2026.

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