Discussion on Improving the Profit Sharing Program Criteria
SK Hynix has begun gathering employee feedback in order to establish new criteria for performance bonuses.
According to industry sources on June 17, SK Hynix announced internally the previous day that it would be collecting opinions to develop new standards for its Profit Sharing (PS) program, with sessions scheduled at the Cheongju Campus on June 18 and the Icheon Campus on June 19. This move appears to be an effort to redefine the criteria for performance bonus surpluses, following labor-management disputes over PS payments earlier this year.
Previously, SK Hynix President Kwak Nohjung stated at an employee communication event held on June 10, "There have been many comments that the rules for performance bonuses are ambiguous," and added, "We need to use this opportunity to develop clear rules by gathering opinions from all levels of the company and finding the optimal approach." He further remarked, "If we create forums such as large-scale discussions or public hearings and share the company's financial status, I believe it could help reduce unnecessary misunderstandings."
The PS program is an incentive paid annually based on company performance, amounting to up to 50% of annual salary (1,000% of base pay). Since 2021, SK Hynix has funded the PS program using 10% of the previous year's operating profit.
Last year, SK Hynix achieved a record-high operating profit of 23.4673 trillion won, and at the beginning of this year, awarded a PS payment equivalent to 1,500% of base pay and 30 shares of company stock as a token of encouragement. However, conflicts arose as the labor union and some employees argued that a higher level of special performance bonuses should have been granted.
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