As executives and employees of the Semiconductor (DS) Division at Samsung Electronics are expected to receive up to several billion won as a special management performance bonus next year, the labor union is pushing forward a plan for voluntary donations of a portion of the bonus. The scheme involves a "labor-management matching" system in which the company matches the amount if employees donate 0.2% to 1% of their special performance bonus.
The Samsung Electronics Branch of the Samsung Group Initial Enterprise Labor Union (Initial Enterprise Labor Union) announced on the 7th that, coinciding with the release of detailed plans for the DS Division's special management performance bonus, it has established as basic principles: △ voluntary participation by employees and executives, △ one-on-one donation matching between labor and management, and △ a donation pledge within the range of 0.2% to 1% of the DS Division's special management performance bonus. Specific details such as donation recipients and operational methods are expected to be determined through ongoing negotiations between labor and management.
Choi Seung-ho, Chair of the Initial Enterprise Labor Union, stated, "The donation pledge will involve the chair and executive board taking the lead in participating, with plans to encourage union members. We will continue to consult with management regarding donation recipients and operational methods," adding, "We recognize our social responsibility and will continue various social contribution activities."
The Samsung Electronics DS Division announced detailed criteria for the payment of the special management performance bonus on the same day. In May, Samsung Electronics labor and management agreed to pay a special management performance bonus funded by 10.5% of the DS Division's operating profit. Forty percent of the total fund will be distributed across the entire DS Division, while the remaining 60% will be paid differentially based on business unit performance.
Based on the labor union's calculation of the expected special management performance bonus payment amount using securities industry estimates of operating profit (approximately 37 trillion won), an employee with an annual salary in the low 80 million won range is estimated to receive: △ approximately 750 million won for the Memory business unit, △ approximately 530 million won for common organizations, and △ approximately 240 million won for Foundry and System LSI. The actual payment amount may vary depending on annual performance and business unit results.
The special management performance bonus payment rates by business unit within the DS Division are scheduled to be announced in early February next year. Actual payments are expected to take place from late March to early April, following the shareholders' meeting in March. The company plans to propose the special management performance bonus payment plan at the shareholders' meeting. The bonus will be paid in company stock after deductions for taxes, health insurance premiums, and other fees. Income tax is expected to be deducted based on the top tax rate of 45%, and donation amounts will also be deducted if desired by employees and executives.
One-third of the received shares can be sold immediately. The remainder will be divided into thirds, with sales restricted for one year and two years, respectively. The number of shares to be paid is calculated based on the reference stock price on the payment date. Non-working periods are deducted from the payment amount using a monthly proration calculation, and in cases of positive dispatch and regional experts, 50% of the calculated amount will be paid.
in INDUSTRY
