Samsung Electronics to Pay Performance Bonuses on 29th... 50% of Annual Salary for Smartphone Division and Others

[Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics confirmed the performance bonuses to be paid to its employees on the 26th. Employees of the Wireless Business Division (IM) and the Visual Display Business Division (VD), which exceeded their targets, will receive performance bonuses equivalent to 50% of their annual salary.

On the same day, Samsung Electronics finalized and notified employees of the division-specific Excess Profit Incentive (OPI) payment plan. OPI is one of Samsung Electronics' performance bonus systems, which compares the annual performance of the affiliated business division with the goals set at the beginning of the year and pays a certain percentage at the beginning of the following year.

According to industry sources, the Wireless Business Division (IM), responsible for smartphones, and the Visual Display Business Division (VD) each receive an OPI of 50%, the highest rate among all business divisions. The Device Solutions (DS) division, in charge of semiconductors, and Samsung Research, the research and development (R&D) organization, reportedly have OPI rates around 47-48%. Other divisions include the Network Business Division at 32% and the Medical Equipment Business Division at 11%.

OPI is usually paid at the end of January every year, but this year it is scheduled to be paid collectively on the morning of the 29th, considering the weekend. Although the total payment amount has not been disclosed, it is estimated to be 6-9% of the total operating profit.

Meanwhile, Samsung Electronics' provisional figures for last year's annual sales were 236.26 trillion KRW, and operating profit was 35.95 trillion KRW. These represent increases of 2.5% and 29.46%, respectively, compared to the previous year.