Researchers from SK ON hold pouch-type battery made by the company.
SEOUL, Feb. 22 (Korea Bizwire) –SK On, a relative newcomer in the battery industry, has announced a novel approach to employee compensation by offering virtual stocks to employees equivalent to 30% of their annual salaries.
This move comes in the wake of the company facing a challenging financial year with zero performance bonuses allocated, stirring concerns among its workforce. The initiative aims to attract top talent and encourage long-term commitment from its employees, thereby strengthening its competitive edge in the long run.
During a performance bonus briefing held for its employees on February 21, SK On shared details about the ‘Value Sharing’ (VS) program, a performance-based stock compensation scheme.
The VS program ties directly to SK On’s corporate valuation, functioning as a form of virtual stock. Employees who stay with the company for three years from the date of the grant and witness the company’s successful initial public offering (IPO) will be eligible to exchange their virtual stocks for actual shares on a one-to-one basis.
However, if SK On fails to go public by 2027, these virtual stocks will expire.
In a strategic move towards its IPO, SK On already raised approximately KRW 4.8 trillion from December 2022 to June 2023 through a pre-IPO round, attracting investments from global private equity funds and financial investors, valuing the company at around 22 trillion won.
The company has committed to its investors to aim for a public listing by the end of 2026.
Following a year without performance bonuses and rising employee dissatisfaction, SK On had previously distributed encouragement bonuses equivalent to 10% of the previous year’s salary plus 3 million won.
Industry insiders note that other battery sector firms like Posco Future M and Ecopro have already implemented Restricted Stock Unit (RSU) schemes to retain talent and motivate staff, suggesting that SK On’s adoption of the VS program aligns with broader industry trends as it prepares for its upcoming IPO.
M. H. Lee (mhlee@koreabizwire.com)
