The Higher the Share Price, the Bigger the Payout... Samsung Electronics to Grant 200 or 300 Company Shares Over Three Years

Samsung Electronics Introduces Performance Share Units
Stock-Based Compensation Linked to Future Performance, Unlike Traditional Bonuses

Samsung Electronics has decided to implement a performance share unit (PSU) system to motivate employees and executives toward achieving the company’s future mid- to long-term performance goals.

According to industry sources on October 14, Samsung Electronics announced internally this morning that it will introduce a PSU program, under which employees will receive company shares based on the increase in stock price over the next three years.

Seoul Samsung Electronics Seocho Building. Photo by Kang Jinhyung

Unlike the excess profit incentive (OPI), which rewards short-term performance over the past year, the newly introduced PSU is an advanced compensation method that links rewards to the company’s future performance and provides them in the form of shares. The greater the increase in the company’s stock price, the larger the compensation employees will receive.

Samsung Electronics plans to grant 200 shares each to employees in CL 1-2 and 300 shares each to those in CL 3-4, with agreements to be made within this month. The final number of shares to be awarded will be determined based on the stock price increase after three years, and the shares will be distributed in equal installments over three years starting in 2028.