This file photo, taken on June 11, 2020, shows an entrance to Samsung Electronics Co.’s plant in Suwon, south of Seoul. (Yonhap)
SEOUL, Dec. 22 (Korea Bizwire) — The performance-based bonuses that Samsung Electronics Co. paid to its employees declined sharply in second-half of this year amid weaker than expected sales resulting from the economic slump, industry sources said Wednesday.
Samsung unveiled what it calls target achievement incentives (TAI) based on its workers’ performance, which could be maximum 100 percent of their monthly salary. Samsung pays out TAI twice a year.
Workers at the device solutions (DS) division that includes Samsung’s memory chip, system LSI and foundry businesses, and mobile experience (MX) and visual display (VD) divisions, which oversee the business of mobile phones and TVs respectively, reportedly received 50 percent of their monthly wages as incentive payments.
Workers at these divisions received 100 percent of their monthly salary as bonuses in the first half of this year.
The network business division will receive the highest TAI at 75 percent of the monthly salary while the consumer electronics division will receive the lowest TAI at 37.5 percent.
The two divisions received TAIs of 100 percent and 62.5 percent, respectively, in the first half of this year.
The primary factor behind the decline in bonuses was the drop in demand in the areas of TVs, smartphones and semiconductors.
J. S. Shin (js_shin@koreabizwire.com)
