Samsung Electronics announced its plan to offer treasury shares worth 175.2 billion won ($120 million) to its executives through the excess profit incentive (OPI) system. The tech giant will distribute 1.15 million treasury shares to 1,051 executives without selling them on the market. Employees can receive bonuses of up to 50 percent of their annual salary under the OPI system when their business division achieves earnings targets, with a portion given as shares after a year.
Samsung Electronics stated that the incentive program is designed to promote responsible management and long-term performance. The distribution of shares for 2024 amounts to 0.019 percent of the company’s outstanding shares and is not expected to significantly impact share value. Chairman Lee Jae-yong of Samsung Electronics has cautioned executives against complacency despite a strong earnings rebound, emphasizing the need to seize the “last chance” to enhance competitiveness.
Lee delivered this message at a seminar for Samsung Group executives following the company’s record operating profit of 20 trillion won (US$13.8 billion) in the fourth quarter amid a semiconductor industry upswing. He urged around 2,000 executives to avoid focusing solely on short-term gains and instead concentrate on rebuilding Samsung’s technological prowess. The seminar also featured insights from Lee Kun-hee, Samsung Group Chairman, and highlighted core business strategies, including those related to artificial intelligence (AI).
