Silhouettes of employees are seen inside Samsung Electronics’ Seocho headquarters. (Yonhap)
SEOUL, Jan. 26 (Korea Bizwire) – Samsung Electronics Co. said Monday it plans to provide treasury shares worth 175.2 billion won (US$120 million) to its executives under its excess profit incentive (OPI) system.
The South Korean tech giant said in a regulatory filing that it will distribute a total of 1.15 million treasury shares to 1,051 executives under the incentive program, without selling the shares on the market.
Under Samsung Electronics’ OPI system, employees can receive up to 50 percent of their annual salary as bonuses when their business division meets earnings targets. Part of the incentive is provided in shares after a one-year period.
“The incentive program aims to enhance responsible management and create long-term performance,” Samsung Electronics said, adding the latest distribution relates to incentives for 2024.
“The shares to be distributed account for 0.019 percent of the company’s outstanding shares and are expected to have a limited impact on share value,” it added.
(Yonhap)
