Samsung Electronics Introduces New "Special Performance Bonus" for Semiconductors, Paid Entirely in Company Shares

10.5% of Business Performance Allocated as Bonus Fund
OPI System Maintained, Special Management Performance Bonus Introduced
Bonus Pool Distribution: 40% to Division, 60% to Business Unit

Samsung Electronics has decided to introduce a new "Special Management Incentive" in its semiconductor (DS) division, funded by 10.5% of the business performance.

According to the "2026 Performance-Based Compensation Tentative Labor-Management Agreement" reached by Samsung Electronics and its labor union on May 21, the existing OPI (Over-Performance Incentive) system will be maintained, while a new special management incentive will be established for the DS division.

The special management incentive will be funded by 10.5% of the business performance, as mutually agreed upon by labor and management, and there will be no cap on the payout rate.

Specifically, the allocation rate of the fund will be 40% for the division and 60% for the business unit. The payout rate for the common organization will be set at 70% of the payout rate for the Memory Business Unit.

Additionally, the special management incentive will be paid entirely in company shares, after tax, in accordance with the conditions set by the company.

On the 20th, after concluding the wage negotiations at the Gyeonggi Employment and Labor Office in Jangan-gu, Suwon-si, Gyeonggi Province, Yeomyeong Gu, Head of People Team for Samsung Electronics DS (Device Solutions – Semiconductor Business), and Seungho Choi, Chairman of Samsung Electronics Branch of the Samsung Group Supra-Enterprise Union, signed the tentative agreement and took a commemorative photo with Kim Young-hoon, Minister of Employment and Labor. Photo by Yonhap News Agency Joint Press Corps.

One-third of the granted shares can be sold immediately, while the remaining two-thirds will be subject to sales restrictions, with each third restricted for one year and two years, respectively.

For deficit business units, the payout rate will be set at 60% of the common payout rate calculated using the division fund. However, the application of this rule will be deferred by one year and will take effect starting with the 2027 incentive.

The DS division's special management incentive will be in effect for the next 10 years.

However, this is conditional on the DS division achieving an operating profit of 200 trillion won annually from 2026 to 2028, and 100 trillion won annually from 2029 to 2035.

This year's average wage increase rate has been set at 6.2% (a base increase of 4.1% and a performance-based increase of 2.1%).

In addition, agreements have been reached on the internal housing loan program and increased congratulatory and condolence allowances for childbirth (1 million won for the first child, 2 million won for the second, and 5 million won for the third or more).

Furthermore, as part of mutual growth efforts, 6 million won worth of company shares will be granted to the DX (finished products) division and the CSS business team. Plans for the creation and management of funds to support shared growth with partner companies will also be announced soon.

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