Nahyeokhwi, CEO of ITM Semiconductor, Earns 9.5 Billion KRW Despite Halved Operating Profit 'Jackpot'

[Asia Economy Reporter Jang Hyowon] Na Hyuk-hwi, CEO of ITM Semiconductor, received an annual salary of 9.5 billion KRW last year. This is analyzed to be due to a gain of approximately 8.9 billion KRW from exercising stock options.

According to the Financial Supervisory Service's electronic disclosure on the 18th, Na Hyuk-hwi, CEO of ITM Semiconductor, received a total compensation of 9.555 billion KRW last year. The salary was 566 million KRW, bonuses were 109 million KRW, and the profit from exercising stock options was 8.88 billion KRW.

Last year, on October 14, when the stock price was 57,600 KRW, Na exercised 180,000 shares, and on November 2, when the stock price was 45,600 KRW, he exercised 20,000 shares. The exercise price was 12,000 KRW. In total, he acquired stocks worth 11.28 billion KRW for 2.4 billion KRW.

[Graphic·Analysis] = Im Hee-jin

Na was granted stock options when ITM Semiconductor went public. ITM Semiconductor is a subsidiary of the Nice Group and was listed on the KOSDAQ market in November 2019. The largest shareholder is Nice Holdings, holding 31.94%. CEO Na Hyuk-hwi holds an 8.27% stake.

ITM Semiconductor was established in February 2000 and mainly produces secondary battery protection circuit products. It also engages in the development of secondary battery packs and sensor products. Na has been leading the company as CEO since 2008.

ITM Semiconductor recorded an operating profit of 25.4 billion KRW on a consolidated basis last year, a 52.5% decrease from 53.5 billion KRW the previous year. Net profit also fell 64.7%, from 41.7 billion KRW to 14.7 billion KRW last year. The profit margin was only high at the time of listing.

The company explained, “Investment costs increased for new orders from overseas clients, and fixed costs rose due to decreased sales caused by COVID-19. Additionally, research and development expenses for entering new businesses and foreign exchange losses due to exchange rate declines occurred.”