Shin Dong-bin, 5.5 Billion Won So Far
Lee Jae-hyun Also Nears Salary Disclosure
Hong Seok-jo, BGF Retail Chairman, 3.2 Billion Won
So far, the owner-chairman who received the highest compensation in the distribution industry last year was Shin Dong-bin, chairman of Lotte Group. However, many distribution companies have yet to disclose their business reports for last year, drawing attention to the final results. In particular, there is keen interest in whether Lee Jae-hyun, chairman of CJ Group who ranked first in the business world in 2022, will maintain his top position last year as well.
According to the business reports disclosed by listed distribution companies on the 14th, Chairman Shin received 2.443 billion KRW from Lotte Wellfood and 3.093 billion KRW from Lotte Chilsung Beverage, totaling 5.536 billion KRW in compensation last year.
Chairman Shin also receives compensation from Hotel Lotte, Lotte Property & Development, Lotte Holdings, Lotte Chemical, and Lotte Shopping. Since these companies have not yet disclosed their business reports, the exact amount of Chairman Shin's compensation is unknown. However, in 2022, he received a total of 18.98 billion KRW from seven affiliates, and in the first half of last year, he was paid 11.254 billion KRW.
However, the disclosure of Lee Jae-hyun, chairman of CJ Group's compensation is still pending. Chairman Lee received 22.136 billion KRW in 2022. He received 10.644 billion KRW from CJ Holdings, 7.294 billion KRW from CJ CheilJedang, and 4.198 billion KRW from CJ ENM in 2022. In the first half of last year, Chairman Lee received 4.968 billion KRW in compensation, which is the same level as the previous year.
So far, the second highest compensated owner-chairman in the distribution industry is Dam Cheol-gon, chairman of Orion Group. Chairman Dam received 1.575 billion KRW from Orion Holdings and 3.056 billion KRW from Orion, totaling 4.631 billion KRW in compensation last year. This is a 9.7% increase compared to the previous year's compensation of 4.223 billion KRW.
Dam's wife, Lee Hwa-kyung, vice chairman of Orion, received 2.377 billion KRW from Orion Holdings and 1.225 billion KRW from Orion, totaling 3.62 billion KRW. The couple's total compensation last year was 8.233 billion KRW. Orion plans to propose an agenda to raise the compensation limit for registered directors from 5 billion KRW to 8 billion KRW at the regular shareholders' meeting scheduled for the 21st.
Jung Yoo-kyung, general manager of Shinsegae, received a total compensation of 3.686 billion KRW last year, including a salary of 1.975 billion KRW and a bonus of 1.711 billion KRW. This represents an increase of about 5.1% compared to the previous year (3.058 billion KRW).
However, the compensation of Jung's mother, Lee Myung-hee, general chairwoman of Shinsegae, and father, Jung Jae-eun, honorary chairman of Shinsegae, was not disclosed. The couple received 1.499 billion KRW each in 2022. The reason their compensation was not disclosed in last year's announcement is that their annual salary ranking fell outside the top five. Currently, the disclosure standard for executive compensation in business reports includes the 'total compensation amount,' which covers salary, bonuses, and retirement benefits. Accordingly, only registered executives with total compensation exceeding 500 million KRW and unregistered executives within the top five in total compensation exceeding 500 million KRW are subject to disclosure. The Shinsegae family members are all unregistered executives.
Shinsegae excluded the compensation of Lee Myung-hee and her husband from disclosure because the retirement benefits received by Kwon Hyuk-gu, president of Shinsegae, and Lee Gil-han, CEO of Shinsegae International, who stepped down last year (2.716 billion KRW and 1.307 billion KRW respectively), were included in the total compensation.
Lee Boo-jin, CEO of Hotel Shilla, received 2.313 billion KRW last year, a 34% decrease compared to 3.056 billion KRW the previous year. Her salary remained the same as in 2022, but the long-term performance incentive, a bonus item, decreased. The long-term performance incentive is paid based on management performance over the past three years.
Hotel Shilla stated, "Compensation is determined according to the executive treatment regulations, considering rank, the nature of delegated duties, and the results of performing delegated duties, and 114 million KRW was paid monthly from January to December."
Kim Ho-yeon, chairman of Binggrae, also saw a decrease in his annual salary. Chairman Kim received 2.062 billion KRW last year, a 6.8% decrease compared to 2.212 billion KRW the previous year. Binggrae stated, "Compensation was determined according to the executive personnel regulations, considering the chairman's position, company contribution, and responsibility for delegated duties."
In the convenience store industry, Hong Seok-jo, chairman of BGF Group, received a total compensation of 3.212 billion KRW from the holding company BGF and affiliate BGF Retail. Heo Yeon-su, vice chairman and CEO of GS Retail, received an annual salary of 1.921 billion KRW last year.
Meanwhile, Hong's eldest son and newly promoted vice chairman of BGF and vice chairman of BGF Retail at the end of last year, Hong Jeong-guk, received 652 million KRW in salary, 50 million KRW in bonuses, and 391 million KRW in variable pay from the holding company, totaling 1.099 billion KRW.
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