Samsung Electronics Disposes 322.8 Billion Won Treasury Shares for Executive Bonuses

Samsung Electronics disclosed on the 13th the disposal of treasury shares worth approximately 322.8 billion won for executive performance bonus payments. The disposal targets 1,132,477 treasury shares distributed to 928 executives. Samsung Electronics explained the action aims to strengthen executive accountability and provide motivation for performance creation by paying part of long-term performance bonuses in the form of treasury stock. The Long-Term Incentive (LTI) program targets executives with three or more years of tenure, distributing compensation based on the prior three-year management performance over the subsequent three years, with amounts ranging from 0 to 300 percent of average annual salary depending on performance.

Samsung Electronics LTI Program Structure

Samsung Electronics' Long-Term Incentive (LTI) program targets executives who have served for three or more years. The program provides compensation based on management performance from the prior three years, distributed over the subsequent three years. Performance-based amounts range from 0 to 300 percent of average annual salary. The 928 executives receiving shares under this disposal are projected to receive an average of approximately 350 million won per person in stock value.

Samsung Electronics Assesses Minimal Dilution Impact

Samsung Electronics stated the shares scheduled for disposal represent 0.019 percent of total issued shares (5,846,278,608 common shares). The company announced the dilution effect on stock value is expected to be minimal.

FAQ

What did Samsung Electronics disclose on the 13th?

Samsung Electronics disclosed the disposal of treasury shares worth approximately 322.8 billion won for executive performance bonus payments, targeting 1,132,477 treasury shares distributed to 928 executives.

How does Samsung Electronics' Long-Term Incentive program work?

The LTI program targets executives with three or more years of tenure, distributing compensation based on the prior three-year management performance over the subsequent three years, with amounts ranging from 0 to 300 percent of average annual salary depending on performance.