The scale of performance bonuses paid by large corporations to their employees at the beginning of the year is varying depending on the industry conditions and business performance.
According to the industry on the 28th, LG Electronics decided to pay a management performance bonus equivalent to 445-665% of the base salary (1/20 of the annual salary) to employees of the H&A Business Division, which is in charge of home appliances. This is a reward for achieving the highest sales for three consecutive years. The H&A Business Division recorded sales of 30.1395 trillion KRW last year, surpassing its competitor Whirlpool in the U.S. and securing the global No. 1 position in home appliances.
The highest payment rate of 665% was allocated to the Living Solutions Business Unit, which contributed to the highest sales by solidifying its global No. 1 position in washing machines.
The VS Business Division, responsible for automotive electrical and electronic equipment, will receive a management performance bonus equivalent to 455% of the base salary. Last year, the VS Business Division surpassed 10 trillion KRW in sales for the first time in 10 years since its launch.
The performance bonus payment rates for other business divisions are 200-300% for the HE Business Division, which handles the TV business, and 135-185% for the BS Business Division, which is responsible for business-to-business (B2B) transactions.
SK Hynix, separate from the productivity incentive (PI) paid semiannually, decided to give each member 15 shares of company stock and a bonus of 2 million KRW. This is a token of appreciation for participating in overcoming the crisis during the semiconductor downturn and leading the increase in corporate value.
On the other hand, due to poor performance caused by the semiconductor industry downturn, the performance bonuses received by employees in Samsung Electronics’ semiconductor division have dropped to the lowest level ever.
The DS Division used to pay about 50% of the annual salary as a performance bonus almost every year at the beginning of the year, but due to the semiconductor industry downturn last year and recording the largest deficit in company history, the possibility of no performance bonus being paid has increased.
The expected payment rates for the excess profit incentive (OPI) in other Samsung Electronics business divisions are 46-50% for the Mobile Experience (MX) Division, 46-49% for Samsung Display, 39-43% for the Visual Display (VD) Division, and 10-12% each for the Digital Appliances (DA) Division and the Network Division.
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