Bonus of 80 Million Won?...Olive Young's Shocking Performance Bonus Sparks Controversy

Maximum Annual Salary Increased by up to 160% for Certain Job Categories
Interpreting the Cautionary Effects of Group-Level Performance Compensation

Olive Young store image (Photo by CJ Olive Young).

Last year, CJ Olive Young, which recorded its highest-ever performance, made headlines for giving extraordinary bonuses to certain job categories.

According to industry sources on the 1st, CJ Olive Young reportedly paid bonuses equivalent to 80-160% of the annual salary to employees in the Merchandising (MD) division. This news has been spreading through online communities and other channels. Posts such as "A colleague received about 80 million won solely as a bonus" have appeared online. However, bonuses were distributed differently depending on the job, with employees outside the MD division reportedly receiving bonuses equivalent to 20-40% of their annual salary.

CJ Olive Young paid special bonuses to employees excluding executives for the first time last year. At that time, the bonus was an additional 5% of the annual salary on top of the basic incentive. The extraordinary bonuses paid this year are interpreted as being influenced by the strong performance and the recent emphasis on performance-based HR policies at the group level.

In 2021, CJ Chairman Lee Jae-hyun stated in the mid-term vision, "The core that makes everything possible is talent," and added, "We will create a workplace that offers unprecedented, extraordinary rewards not seen in other companies." Lee Sun-jung, who became the CEO of CJ Olive Young in November last year, is also a hands-on CEO who has delivered results in sales and the MD division.

CJ Olive Young said, "Incentives are a personal matter, so we cannot disclose the details."