HQ of Samsung Electronics (Image courtesy of Yonhap)
SEOUL, Oct. 14 (Korea Bizwire) — Samsung Electronics Co. said Tuesday it will introduce a new performance stock unit (PSU) program designed to tie employee compensation directly to long-term corporate performance and stock price gains, in an effort to align employee motivation with shareholder value.
Under the plan, Samsung will award shares to employees based on the company’s stock price performance over the next three years. According to an internal notice shared with staff, the PSU system will grant 200 shares to employees in career levels 1–2 and 300 shares to those in levels 3–4, with payouts adjusted according to the increase in Samsung’s share price.
The payout multiplier ranges from zero if the stock rises less than 20 percent, to a maximum of two times the base allocation if the price doubles by October 2028. The shares will be distributed evenly over three years beginning in 2028.
Unlike Samsung’s existing overprofit incentive (OPI) bonus, which rewards short-term annual results, the PSU plan is designed to promote sustained performance and corporate value creation. “The program aims to strengthen Samsung’s long-term competitiveness and encourage employees to grow with the company,” Samsung said in a statement.
The initiative also reflects Samsung’s effort to enhance shareholder value, as employee compensation becomes directly linked to stock performance.
This photo provided by Samsung Electronics Co. shows the company’s semiconductor production facility in Pyeongtaek, south of Seoul. (Image courtesy of Yonhap)
In addition, Samsung plans to allow employees to receive a portion of their annual OPI bonuses in shares rather than cash beginning next year. Those who choose stock compensation will receive an additional 15 percent in shares if they hold them for at least one year.
The move comes amid Samsung’s broader drive to reinforce responsible management practices and align incentives across all levels of the company — from executives to rank-and-file employees — as it prepares for a new cycle of semiconductor growth and global competition.
Kevin Lee (kevinlee@koreabizwire.com)
