Samsung Electronics Grants 51.3 Billion KRW in Company Share Incentives to Executives

Samsung Electronics recently granted long-term incentive (LTI) awards worth 51.3 billion KRW to its executives in the form of company shares.

Samsung Electronics Seocho Building. Photo by Jinhyung Kang aymsdream@

According to industry sources on August 3, Samsung Electronics distributed a total of 51,356,850,000 KRW worth of LTI to 622 executives in the form of company shares on July 28, and disclosed the details of the allocation.

The LTI program is a system that provides compensation based on management performance over the past three years to executives who have served for at least three full years, with the payment divided annually over the next three years. Depending on performance, the amount can range from 0% to 300% of the average annual salary.

At the end of April, Samsung Electronics announced that, starting this year, it would introduce a plan to pay part of the LTI to executives in company shares, aiming to strengthen responsible management and enhance shareholder value. As a result, executives now receive at least 50% of their incentive in company shares. Specifically, within the LTI, vice presidents receive at least 50% in shares, executive vice presidents at least 70%, presidents at least 80%, and registered board members receive 100% in company shares.

Among the 19 executives at the president level, Roh Taemoon, acting head of the Device eXperience (DX) division (president), received the largest number of company shares, with 22,679 shares. Based on the share price on the payment date of July 28 (70,400 KRW), this amounts to approximately 1,596,600,000 KRW. Next, Jung Hyunho, Vice Chairman of the Business Support Task Force, received 13,419 shares (944,690,000 KRW), and Park Hakkyu, President of the Business Support Task Force, received 9,820 shares (691,320,000 KRW).

In the Device Solutions (DS) division, which oversees the semiconductor business, Kim Yongkwan, President in charge of strategy, received 6,349 shares (446,960,000 KRW), Park Yongin, President and head of the System LSI business unit, received 6,220 shares (437,880,000 KRW), and Han Jinman, President and head of the Foundry business unit, received 3,116 shares (219,360,000 KRW).

Additionally, Choi Wonjun, President and head of the Mobile eXperience (MX) business unit’s development office, and Yong Seokwoo, President and head of the Visual Display business unit, received 6,722 shares (473,220,000 KRW) and 2,869 shares (201,970,000 KRW), respectively.

Following Samsung Electronics, other affiliates such as Samsung SDI, Samsung SDS, and Samsung Electro-Mechanics are also planning to introduce LTI programs for executives starting next year.