Doing Better Than Choi Hee-moon, Jung Young-chae, and Jang Seok-hoon... Branch Manager with 6.8 Billion Won Annual Salary 'Top Securitiesman'

Samsung Securities Branch Manager Kang Jeong-gu Tops Securities Firms with 6.8 Billion KRW Salary
Choi Hyun-man, Chairman of Mirae Asset Securities, Earns 4.1 Billion KRW, 'CEO Salary King for 3 Consecutive Years'

[Asia Economy Reporters Lee Seon-ae and Lee Myung-hwan] Choi Hee-moon, Vice Chairman of Meritz Securities, who succeeded in a fourth term as CEO leading the highest-ever performance and became the longest-serving CEO in the securities industry; Jung Young-chae, President of NH Investment & Securities, who succeeded in a third term by joining the 'First Operating Profit 1 Trillion Club' since the company's founding; and Jang Seok-hoon, President of Samsung Securities, who was recognized for outstanding work performance and extended his term by three years last year, joining the ranks of long-serving CEOs. A large number of ultra-high earners, who are said to be doing better than the most famous CEOs in the securities industry, have emerged. This is due to a bonus feast following record-breaking performance. A branch manager with a higher salary than Choi Hyun-man, Chairman and CEO of Mirae Asset Securities, who has reserved the title of 'CEO Salary King,' is expected to take the overall 'Salary King' position in the securities industry.

According to the Financial Supervisory Service's electronic disclosure system on the 17th, among nine securities companies that submitted business reports for 2021, eight companies had ultra-high earners with salaries higher than their CEOs. These companies are Kyobo Securities, Meritz Securities, Samsung Securities, Hanyang Securities, Hanwha Investment & Securities, Hyundai Motor Securities, NH Investment & Securities, and Daishin Securities.

Kang Jung-gu, Branch Manager at Samsung Securities, received 6.855 billion KRW last year, securing the 'Salary King' position among all securities company employees. Kang's salary is about three times higher than that of President Jang Seok-hoon, who received 2.312 billion KRW. Kang received a base salary of 78 million KRW, a bonus including performance pay of 6.763 billion KRW, and other labor income such as welfare benefits amounting to 14 million KRW. Samsung Securities explained his high performance bonus by stating, "Branch Manager Kang contributed to increasing customer returns through proactive investment expansion in overseas advanced companies and promising domestic industries based on leading insights into global trend changes." They added, "The performance bonus was calculated by multiplying the amount corresponding to the payment rate stipulated in the system after limiting the break-even point (BEP) on profits generated through retail brokerage, financial product trading, and financial advisory under the channel sales department's performance compensation system."

Although not all securities companies' business reports have been disclosed, Kang is expected to be the top salary earner in the securities industry. As of the first half of last year, the highest compensation was 4.45 billion KRW received by Kim Nam-won, Deputy Director at BNK Investment & Securities, with Kang ranking second at 4.39 billion KRW at that time.

At NH Investment & Securities, Executive Director Kim Yeon-su (2.373 billion KRW) earned nearly four times more than President Jung Young-chae (512 million KRW) last year. Kim, who resigned at the end of last year, received 1.31 billion KRW in severance pay alone, along with a performance bonus of 773 million KRW. NH Securities explained Kim's performance bonus by stating, "The organization under Kim's responsibility achieved a net operating profit of 148.4 billion KRW and an ordinary profit of 110.9 billion KRW." They added, "Considering this, the remuneration committee resolved to pay 321 million KRW immediately in 2021 and a total of 773 million KRW including deferred performance bonuses."

Lee Choong-hoon, Deputy Head of the Northern Suwon WM Center, received 2.225 billion KRW, becoming the highest-paid executive among current employees. Lee received a bonus of 2.113 billion KRW and a salary of 99 million KRW. NH Investment & Securities explained, "As a PB, he managed financial asset portfolios and provided services such as customer tax and inheritance. He achieved profits through financial product sales and stock trading commissions."

However, President Jung received performance pay earlier this year, but the timing of payment and the business report preparation did not coincide, so it was not reflected in this business report.

At Meritz Securities, Executive Director Noh Young-jin (3.027 billion KRW) earned more than Vice Chairman Choi Hee-moon (2.880 billion KRW). Meritz Securities explained, "Noh received the highest personal evaluation rating in 2020 and was highly evaluated for his outstanding performance and stable management as head of the stock management division."

At Hanyang Securities, Executive Director Park Sun-young (3.403 billion KRW) earned six times more than President Lim Jae-taek (551 million KRW). At Daishin Securities, the owner's family received high compensation. Chairman Lee Yui-ryong received 3.157 billion KRW last year, making him the salary king. His son, Vice Chairman Yang Hong-seok, received 3 billion KRW. CEO Oh Ik-geun received 890 million KRW.

The CEO salary king was reserved without surprise by Choi Hyun-man, Chairman and CEO of Mirae Asset Securities. He received 4.129 billion KRW last year, with a salary of 1.667 billion KRW and a performance bonus of 2.459 billion KRW. He was the 'CEO Salary King' for two consecutive years, receiving 4.061 billion KRW in 2020 and 2.892 billion KRW in 2019, and is expected to set a record for three consecutive years. Based on this performance, Choi was promoted to 'Chairman' last year, becoming the first professional manager in the financial industry to hold this position.

Recently, securities company employees received generous performance bonuses. Some large securities companies paid up to 4000% and 2200% of base salary. Most securities companies paid performance bonuses ranging from 500% to 2000%. This was thanks to record-breaking performance. Last year, five securities companies exceeded operating profits of 1 trillion KRW: Mirae Asset, NH, Samsung, Kiwoom, and Korea Investment & Securities.

Average employee salaries also increased. The average salary per person at the top 10 securities companies by equity capital was 124 million KRW in 2020. Among them, the average salary per person at five companies that submitted business reports last year increased by about 27% to 158 million KRW in 2021. This year, the average salary is expected to exceed 200 million KRW. Meritz Securities, which has the highest average salary per person among securities companies, already surpassed 200 million KRW last year.