SEOUL, South Korea — Samsung Electronics said Monday it plans to distribute treasury shares worth 175.2 billion won, or about $120 million, to its executives under the company’s excess profit incentive system.
In a regulatory filing, the South Korean technology giant said it will allocate a total of 1.15 million treasury shares to 1,051 executives as part of the incentive program. The shares will be distributed directly and not sold on the market.
Under Samsung Electronics’ excess profit incentive system, employees can receive bonuses of up to 50 percent of their annual salary when their respective business divisions meet earnings targets. A portion of the incentive is paid in shares after a one-year period.
“The incentive programme aims to enhance responsible management and create long-term performance,” Samsung Electronics said, adding that the latest distribution relates to incentives for 2024.
The company said the shares to be distributed represent about 0.019 percent of its outstanding shares and are expected to have a limited impact on overall share value.
Separately, Samsung Electronics Chairman Lee Jae-yong has urged company executives not to become complacent despite a sharp rebound in earnings, warning that the group faces a “last chance” to restore its competitiveness, according to industry sources.
Lee delivered the message during a recent seminar attended by Samsung Group executives, held after the company reported a record operating profit of 20 trillion won, or about $13.8 billion, for the fourth quarter amid an upcycle in the semiconductor industry.
The remarks were intended to caution roughly 2,000 executives against focusing on short-term performance gains and to encourage renewed efforts to fundamentally rebuild Samsung’s technological edge, the sources said.
During the seminar, Lee shared key remarks from his late father and former Samsung Group Chairman Lee Kun-hee, along with discussions on the company’s core business strategies, including those related to artificial intelligence. (Source: IANS)
