Accumulated Deficit in Second Half... 0% Performance Bonus for First Time Since 2015
Memory Also 12.5% of Monthly Base Salary
Samsung Display: 100% for Small and Medium, 50% for Large
The foundry division of Samsung Electronics Semiconductor (DS) sector, hit hard by the 'semiconductor cold wave,' will not receive any performance bonuses in the second half of the year. While it reached 100% in the first half of last year, it has dropped to 0% due to accumulated losses. Since the introduction of the 'Target Achievement Incentive' (TAI) in 2015, this is the first time the foundry division has not received it. Among Samsung Electronics affiliates, only the Small and Medium Display Division of Samsung Display will receive a performance bonus equal to 100% of the base salary.
On the 20th, Samsung Electronics disclosed the payment rates of the 'Target Achievement Incentive' (TAI, formerly PI) for each business division for the second half of this year through an internal notice. TAI is one of Samsung's performance bonus systems, paid once each in the first and second half of the year, considering performance, with a maximum of 100% of the monthly base salary. The second half TAI will be paid on the 22nd of this month according to the payment rates by division.
By division, the Memory Division of the DS sector was set at 12.5% of the monthly base salary, while the Foundry Division and System LSI were set at 0%. This is the lowest scale in the eight years since the TAI system was implemented.
The DS sector had received the highest rate of '100% of the monthly base salary' as TAI every time from 2015 until the first half of last year. However, as semiconductor performance worsened, the performance bonus decreased to 50% in the second half of last year and 25% in the first half of this year. Samsung Electronics DS sector recorded operating losses of 4.58 trillion KRW in Q1, 4.36 trillion KRW in Q2, and 3.75 trillion KRW in Q3 this year, accumulating losses of 12.69 trillion KRW. An operating loss of 768 billion KRW is expected in Q4. However, it is anticipated to return to profitability from Q1 next year.
In the Device Experience (DX) sector, the Mobile Experience (MX) division responsible for smartphones and the Visual Display (VD) division were set to receive 75% of the monthly base salary. The performance bonuses for the Home Appliances and Network divisions are set at 25%.
Other electronics affiliates besides Samsung Electronics also announced their second half performance bonus payment rates on the same day.
Samsung Display paid between 50% and 100% by division. The Small and Medium Display Division received 100%, research institutes and staff 75%, and the Large Display Division 50%.
Samsung Electro-Mechanics set the Package Solution Division, responsible for semiconductor substrates such as Flip Chip Ball Grid Array (FC-BGA), at 37.5% of the base salary, and the Component Division, which operates the Multi-Layer Ceramic Capacitor (MLCC) business, at 50%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
