Seoul, Jan 26 (SocialNews.XYZ) Samsung Electronics said on Monday it plans to provide treasury shares worth 175.2 billion won ($120 million) to its executives under its excess profit incentive (OPI) system.
The South Korean tech giant said in a regulatory filing that it will distribute a total of 1.15 million treasury shares to 1,051 executives under the incentive program, without selling the shares on the market.
Under Samsung Electronics' OPI system, employees can receive up to 50 percent of their annual salary as bonuses when their business division meets earnings targets. Part of the incentive is provided in shares after a one-year period, reports Yonhap news agency.
"The incentive programme aims to enhance responsible management and create long-term performance," Samsung Electronics said, adding the latest distribution relates to incentives for 2024.
"The shares to be distributed account for 0.019 percent of the company's outstanding shares and are expected to have a limited impact on share value," it added.
Meanwhile, Lee Jae-yong, chairman of Samsung Electronics, has urged the company's executives not to become complacent despite a sharp rebound in earnings, stressing that the company faces a "last chance" to restore its competitiveness, industry sources said.
Lee delivered the message during a recent seminar for Samsung Group executives, following the company's announcement of a record operating profit of 20 trillion won (US$13.8 billion) for the fourth quarter amid a semiconductor industry upcycle.
His remarks were aimed at warning some 2,000 executives against settling for short-term performance gains and calling for stepped-up efforts to fundamentally rebuild Samsung's technological edge, according to the sources, who asked not to be identified.
During the seminar, Lee shared key remarks by his late father and Samsung Group Chairman Lee Kun-hee, along with the company's core business strategies, including those related to artificial intelligence (AI).
—IANS
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Source: IANS
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