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Samsung Electronics President TM Roh, head of the MX Division, speaks at a press conference at the company’s Seocho office in Seoul on July 28. (Samsung Electronics) |
[Alpha Biz= Kim Jisun] Samsung Electronics has distributed ₩51.3 billion (approx. USD 37 million) worth of its own shares to executives as part of its Long-Term Incentive (LTI) program, aimed at strengthening accountability and enhancing corporate competitiveness.
According to the company on August 3, Samsung decided on July 25 to grant 779,315 common shares to 622 executives. Based on the closing price of ₩65,900 per share on the grant date, the total value amounts to ₩51.36 billion.
On average, each executive received about 1,253 shares, worth approximately ₩82.6 million.
The LTI program applies to executives with more than three years of service and rewards them based on management performance over the past three years, with payouts spread across the next three. Depending on performance, the incentive can amount to up to 300% of an executive’s average annual salary.
Starting this year, Samsung Electronics has been issuing performance-based compensation in company stock:
At least 50% for senior vice presidents
At least 70% for executive vice presidents
At least 80% for presidents
100% for registered executives
Among the company’s 25 presidents and above, 19 executives received shares under the LTI plan (excluding Chairman Jay Y. Lee, who forgoes a salary, and five others who have served less than three years).
Leading the recipients was TM Roh, head of the Device eXperience (DX) Division, who was awarded 22,679 shares, worth ₩1.6 billion (based on the July 28 closing price of ₩70,400).
Other top recipients include:
Jung Hyun-ho, Vice Chairman of Business Support TF – 13,419 shares (₩944 million)
Park Hak-kyu, President of Business Support TF – 9,820 shares (₩691 million)
Jeon Kyung-hoon, President of Samsung Research – 8,866 shares
Choi Won-joon, President of the MX Business, who leads Galaxy AI Phone development, along with Kim Yong-kwan (DS Strategy President) and Park Yong-in (System LSI President), each received over 6,000 shares.
Samsung affiliates including Samsung SDI, Samsung SDS, and Samsung Electro-Mechanics will also introduce LTI programs for executives starting next year, underscoring a broader move across the Samsung Group to align leadership rewards with long-term performance.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
