Samsung Electronics has become the first South Korean company to post quarterly operating profit of 20 trillion won, far surpassing market expectations in the fourth quarter of 2025 and setting new records for both annual revenue and quarterly operating profit. The photo shows Samsung Electronics’ headquarters in Seocho-gu, Seoul. (Yonhap)
SEOUL, Jan. 12 (Korea Bizwire) — Samsung Electronics has expanded its stock-based bonus program to include all employees, ending a rule that had required executives to receive at least half of their performance bonuses in company shares, according to people familiar with the decision.
The move comes as Samsung’s share price has surged over the past year, recently topping 140,000 won, amid a recovery in earnings. Under the revised policy, announced internally this month, employees and executives alike will be able to choose how much of their annual performance bonus to receive in company stock, rather than cash.
Beginning with bonuses tied to 2025 performance and scheduled for payment on Jan. 30, employees may opt to take between 0 and 50 percent of their performance-based incentive in Samsung shares, in increments of 10 percent.
They may also choose to receive their entire bonus in cash. Those who agree to hold the shares for at least one year will receive an additional 15 percent of the stock amount as an upfront grant.
The new arrangement replaces a system introduced last year that applied only to executives and made stock-based compensation mandatory at higher levels of seniority.
Under that earlier policy, registered executives were required to receive 100 percent of their performance bonuses in company shares, while vice presidents and presidents were subject to minimum stock ratios of 70 percent and 80 percent, respectively. The value of those stock awards was also adjusted downward if the share price fell during the one-year holding period.
Samsung Electronics has become the first South Korean company to post quarterly operating profit of 20 trillion won, far surpassing market expectations in the fourth quarter of 2025 and setting new records for both annual revenue and quarterly operating profit. The photo shows Samsung Electronics’ headquarters in Seocho-gu, Seoul. (Yonhap)
By extending the stock-option program to rank-and-file employees and making participation voluntary, Samsung appears to be recalibrating its approach as business conditions improve. Some critics have argued that loosening the mandatory stock requirement for executives could weaken the company’s emphasis on accountability and long-term stewardship.
Samsung said it continues to pursue responsible management through other equity-based incentives. In October, the company introduced a performance share unit program that links stock awards to longer-term share-price performance, with payouts after three years ranging from zero if the stock rises less than 20 percent to double the base award if it gains more than 100 percent.
The latest changes underscore how Korea’s largest company is adapting its compensation framework amid a sharp rebound in profits and investor confidence, while seeking to balance incentives across its workforce.
Kevin Lee (kevinlee@koreabizwire.com)
