Incentives from Holding Company Lead to 95% Increase Year-on-Year
Shin Dong-bin of Lotte Ranks Second with 17.8 Billion KRW
Ranking May Change if Including Two Unlisted Companies
Jung Yong-jin Receives 3.6 Billion KRW, Jung Ji-sun 5 Billion KRW
Lee Jae-hyun, chairman of CJ Group, received more than 19 billion KRW in compensation last year, ranking first among owners of major distribution conglomerates. Chairman Lee surpassed Shin Dong-bin, chairman of Lotte Group, who had received the highest compensation among owners in the same industry, by securing substantial incentives based on performance from 2021 to 2023.
According to the business reports disclosed by each company on the Financial Supervisory Service's electronic disclosure system on the 19th, Chairman Lee received 15.63 billion KRW from the holding company CJ and 3.74 billion KRW from CJ CheilJedang, totaling 19.37 billion KRW in compensation last year. This represents a 95% increase from 9.936 billion KRW the previous year.
Among this, the compensation received from CJ increased by about 11 billion KRW compared to the previous year. This includes long-term incentives reflecting the performance from 2021 to 2023 paid to executives including Chairman Lee. The salary Chairman Lee received from CJ last year was 4.38 billion KRW, and the bonus was 11.25 billion KRW. However, he did not receive any compensation from CJ ENM, which had poor performance, starting from the first half of last year. The total compensation for Chairman Lee last year decreased by 12.5% compared to 22.136 billion KRW in 2022.
The second place was Shin Dong-bin, who received a total of 17.834 billion KRW in compensation last year from five listed companies including Lotte Holdings. Specifically, he received 5.972 billion KRW from Lotte Holdings, including a salary of 3.8 billion KRW and a bonus of 2.17 billion KRW. Among affiliates, he received 3.8 billion KRW from Lotte Chemical, 1.964 billion KRW from Lotte Shopping, 2.65 billion KRW from Lotte Wellfood, and 3.493 billion KRW from Lotte Chilsung Beverage. The compensation Shin received from these five companies increased by 11.9 million KRW (0.67%) from 17.715 billion KRW the previous year. Including the salary from unlisted companies Hotel Lotte and Lotte Property & Development, which have not yet disclosed their business reports, the total amount could surpass Chairman Lee. Shin received 3.57 billion KRW from these two companies in 2023.
Jung Yong-jin, chairman of Shinsegae Group, received a total of 3.609 billion KRW in compensation last year, a 2.4% decrease compared to the previous year. Among this, the salary was 1.982 billion KRW, the same as in 2023, and the bonus was 1.627 billion KRW, down 90 million KRW from 1.717 billion KRW the previous year. The company explained, "Although Chairman Jung achieved results such as turning Emart profitable, he reduced his annual salary with a stance of leading by example to overcome the still challenging internal and external management environment."
Chairman Lee Myung-hee, general chairman of Shinsegae Group, and Honorary Chairman Jung Jae-eun also reduced their salaries and did not receive performance bonuses. The compensation for General Chairman Lee and Honorary Chairman Jung was set at 1.767 billion KRW each, including a salary of 1.54 billion KRW and Lunar New Year and Chuseok bonuses of 263 million KRW. This is a decrease of 1.298 billion KRW (42.3%) compared to the previous year. Additionally, they each received 1.264 billion KRW from Shinsegae Co., Ltd., and the total compensation they received from Emart and Shinsegae last year decreased by 37.5% compared to the previous year. Jung Yong-jin's sister, Jung Yoo-kyung, chairman of Shinsegae Co., Ltd., received 3.596 billion KRW in compensation last year, down 90 million KRW (2.4%) from the previous year.
Jung Ji-sun, chairman of Hyundai Department Store Group, received 5.044 billion KRW in compensation from Hyundai Department Store last year. The salary was 3.72 billion KRW, and the bonus was 1.341 billion KRW. This is an increase of 304 million KRW (6.4%) from 4.74 billion KRW the previous year. Jung's younger brother, Jung Kyo-sun, vice chairman, received 1.767 billion KRW from Hyundai Department Store, an increase of 37 million KRW (2.1%) from the previous year. Vice Chairman Jung also received 2.043 billion KRW as CEO compensation from Hyundai Home Shopping. Both are expected to receive additional compensation from Hyundai GF Holdings, which will disclose its business report on the 21st, so their total compensation is expected to increase further.
Additionally, Kim Dong-sun, the third son of Kim Seung-yeon, chairman of Hanwha Group, received 1.29 billion KRW from Hanwha Galleria and 970 million KRW from Hanwha Hotels & Resorts as compensation last year.
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