Samsung Electronics to Dispose of 344.5 Billion Won in Treasury Shares for Employee Bonuses

▲ Samsung Electronics Seocho Office Building

Samsung Electronics will dispose of treasury shares worth approximately 340 billion won to fund performance bonuses for employees in its finished product business division, following a labor-management agreement reached in May.

Samsung Electronics announced today that it plans to dispose of 1,083,434 treasury shares on July 8 to provide stock-based compensation in accordance with this year's labor-management agreement.

The scale of the disposal is approximately 344.5 billion won, based on the closing price of 318,000 won on July 6, the day before the board of directors' resolution.

The bonuses will be provided to 49,345 employees in the finished product business division and the CSS business team.

On May 21, Samsung Electronics reached a tentative labor-management agreement to pay 10.5 percent of operating profit as a special management performance bonus to the semiconductor business division, and to provide treasury shares worth 6 million won to the finished product division and others as part of a mutual growth initiative.

At the end of last month, the company announced that it would provide 22.65 shares of treasury stock per person to employees in the finished product division and others on July 8.

The 22.65 shares were calculated based on the stock price of 264,822 won as of May 27, the date of the labor-management wage negotiation agreement. The company decided to provide 22 shares as stock and 0.65 shares as a cash payment of 173,920 won.

As the stock price has risen since the calculation date, employees in the DX division and the CSS business team will receive treasury shares worth 6,996,000 won and 173,920 won in cash, based on the closing price on July 6. (Photo: Yonhap News)

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