Samsung Electronics to Dispose of 322.8 Billion Won in Treasury Shares for Executive Performance Bonuses

Samsung Electronics is set to dispose of treasury shares worth over 320 billion won for the purpose of paying long-term performance bonuses to its executives.

Samsung Electronics announced in a regulatory filing today (July 13) that it will dispose of 1,132,477 treasury shares to provide a portion of long-term performance bonuses in the form of company stock, aiming to strengthen responsible management and motivate executives to achieve long-term performance goals.

The scale of the disposal is 322.755945 billion won, based on the closing price of 285,000 won on July 10, the business day prior to the board of directors' resolution.

The recipients include 928 executives and others, with each person expected to receive shares worth nearly 350 million won on average.

Samsung Electronics operates a Long-Term Incentive (LTI) system, which provides compensation based on management performance over the previous three years to executives who have served for at least three years, with the payout distributed over the following three years.

Depending on performance, the bonus is set between 0% and 300% of the average annual salary.

Starting last year, the company modified the system to allow a portion of the LTI to be paid in treasury shares to strengthen responsible management.

Samsung Electronics stated, "The shares to be disposed of account for 0.019% of the total issued shares (5,846,278,608 common shares), and the dilution effect on stock value is expected to be minimal."
※ Please note: This article was translated by AI and may contain errors.