Smartphone, TV, and Home Appliance Divisions Rise Compared to Last Year
Departments within Samsung Electronics that experienced poor performance due to the semiconductor industry downturn also showed differences in performance bonuses.
According to industry sources on the 29th, Samsung Electronics confirmed and announced the Excess Profit Incentive (OPI) payment rates by business division internally on the same day. OPI is a performance bonus system that pays up to 50% of an individual's annual salary once a year within 20% of the excess profit when the affiliated business division's performance exceeds the target set at the beginning of the year.
The OPI payment rates for the Device Experience (DX) division, which is responsible for smartphones and TVs, mostly increased compared to last year, except for the Network Business Division (27%→12%). Among them, the Mobile Experience (MX) division, which handles the smartphone business, has the highest OPI payment rate at 50% of the annual salary. This is interpreted as a result of playing a major role in supporting the company's overall performance last year due to strong sales of flagship smartphones. Last year, the MX division's OPI payment rate was 37%.
The OPI payment rate for the Visual Display (VD) division, responsible for the TV business, rose from 24% last year to 43% this year. Despite a global decline in TV demand, the division focused on selling high-value-added products such as Neo QLED, Organic Light Emitting Diode (OLED), and large-sized TVs, improving profitability.
The OPI payment rates for the relatively underperforming Digital Appliances (DA) division and the Medical Device division were set slightly higher at 12%, compared to 7% last year.
On the other hand, the Device Solutions (DS) division, which had received about 50% of the annual salary as OPI almost every year including 50% at the beginning of last year, will receive an empty envelope this time due to unprecedented poor performance.
This is believed to be because the semiconductor industry suffered a severe downturn due to the economic recession, with the DS division accumulating losses exceeding 12 trillion KRW from the first to the third quarter of last year. In the fourth quarter, the memory market showed signs of recovery, reducing semiconductor losses to an estimated 1 to 2 trillion KRW. Samsung Electronics plans to disclose the confirmed fourth-quarter results along with business division performance on the 31st.
This OPI will be paid on the 31st.
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