[Reporter’s Notebook] The Question Raised by SK hynix’s 1.2 Billion Won per Person Bonus

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SK Hynix's "record-breaking" performance bonuses are making headlines not only in Korea but also overseas. With the average bonus per employee amounting to hundreds of millions of won-and in some cases, even reaching the 1 billion won range-there have been reactions such as, “I could buy a house with this bonus.” Some even predict that this massive cash payout could stimulate the local real estate market. For those observing the capital market, one question arises: What if these bonuses had been paid in stock rather than cash?

Consider Nvidia, a core company in the artificial intelligence (AI) value chain, much like SK Hynix. Like other major U.S. big tech companies, Nvidia has provided a significant portion of its performance rewards in the form of stock-based compensation. Over the past five years, Nvidia’s stock price has soared approximately thirtyfold, and employees’ wealth has grown alongside it. This is why there is a saying in Silicon Valley that “Nvidia’s parking lot is full of supercars.”

Of course, simply receiving stock-based compensation-such as stock options (the right to purchase shares at a set price), restricted stock units (RSUs), or performance share units (PSUs)-does not automatically make everyone wealthy. If employees had quickly cashed out their shares, they would not have experienced the same level of wealth accumulation as today. The key factors are choice and perception. Nvidia’s executives and employees deeply understood the company’s unrivaled technological edge and market position, and, believing that the rewards of growth would only increase, they chose to hold onto their equity.

What was created in this process was not just compensation, but an entire narrative: “I became wealthy simply by doing my job,” or “I have grown in the same direction as the major shareholders.” This narrative is not for employees alone. The signal that internal stakeholders are betting on the company’s long-term growth also has a positive effect on shareholders. Confidence in the company’s future begins within the organization, and this translates into market trust. In the long run, it can serve as a foundation for stable stock price growth as well.

Of course, stock-based compensation is not always the perfect answer. In an environment of low interest rates and strong growth expectations, stock compensation can be a much greater motivator and a means of asset building. However, in periods of high interest rates and high volatility, guaranteed cash may offer more stability. For listed companies, stock-based compensation can be a sensitive issue, as it may dilute the stakes of existing shareholders. Minority shareholders may view stock compensation as a disadvantage that reduces their own share.

It is impossible to declare that one method is definitively better than the other. There needs to be discussion about how to design a compensation system that aligns with a company’s stage of growth, shareholder structure, and talent strategy. The era when wealth accumulation meant buying an apartment in Gangnam with a large company salary is long over. If a structure in which employees participate in a company’s growth takes hold, it is possible to create a new narrative, where asset building does not rely solely on real estate. This could also help address the phenomenon of science and engineering talent flocking to medical schools. Perhaps now is the time to consider an elegant solution that attracts talent, strengthens organizational cohesion, and aligns interests with shareholders.

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