Samsung Electronics minority shareholders organized through platform Act are pressuring the National Pension Service over a proposed executive bonus plan that bypasses shareholder approval. The shareholders, numbering 424 and collectively holding 207,724 shares, plan to formally submit a letter to the National Pension Service on May 20 after collecting signatures through May 19. The bonus agreement between Samsung Electronics labor and management would allocate 10.5% of business performance as bonuses over 10 years without requiring shareholder meeting approval, with DS division employees potentially receiving up to 600 million won each. The National Pension Service holds a 7.9% stake in Samsung Electronics. The protest emerges as Samsung Electronics stock closed at 255,000 won, down 8.77% from the previous trading day.
Act Platform Collects Shareholder Signatures for National Pension Service Letter
Act announced on the 16th that it plans to deliver a shareholder letter to the National Pension Service Fund Management Headquarters. As of the announcement, 424 shareholders holding 207,724 shares had signed the letter. Act stated it will collect signatures from minority shareholders until May 19 and formally submit the letter on May 20.
The letter expresses concern that the '2026 Wage Agreement and Performance Bonus Tentative Agreement' concluded between Samsung Electronics labor and management would be finalized and implemented without shareholder meeting approval.
Bonus Plan Allocates 10.5% of Business Performance Over 10 Years
Act stated concerns that the newly established 'Special Management Performance Bonus' for the semiconductor division could result in "a maximum of 40 trillion won annually based on this year's performance, and hundreds of trillions of won over 10 years being distributed without shareholder meeting approval."
Under the bonus agreement, 10.5% of business performance will be paid as bonuses over the next 10 years without an upper limit. When combined with existing incentives, total resources reach 12% of business performance. DS (Device Experience/Semiconductor) division employees are expected to receive bonuses of up to 600 million won per person.
Shareholders Demand Approval Requirement for Bonus Payments
Act emphasized that "the National Pension Service, as a major shareholder of Samsung Electronics and a fiduciary responsible for the retirement income of the people, has a grave obligation to prevent excessive outflow of operating profit belonging to shareholders and ensure it leads to shareholder returns."
The platform stated that "if the National Pension Service neglects its fiduciary responsibility despite concerns over massive national wealth outflow, 6 million Samsung Electronics minority shareholders cannot help but severely point out the National Pension Service's dereliction of duty."
Act pointed out that "when stock prices fall, the loss is entirely borne by shareholders, but executives and employees receive bonuses linked to operating profit regardless of stock price fluctuations." The platform explained that "questions about risk asymmetry—where shareholders bear the risk while employees share the gains without risk—are rapidly spreading among shareholders."
Regarding recent government moves to mandate board resolution for bonus payments, Act argued that "final approval should go through the shareholder meeting, not the board."
Act stated that "while the remuneration limit for directors worth tens of billions of won requires shareholder meeting approval, executing performance bonuses worth tens of trillions of won solely by board decision directly contradicts the intent of commercial law." The platform emphasized that "it is the will of 6 million shareholders to put performance bonuses worth tens of trillions of won on the shareholder meeting judgment stand."
Act representative Lee Sang-mok stated that "the distribution of massive profits paid steadily over 10 years, amounting to tens of trillions of won annually, should naturally undergo strict approval from the true owners who bear all the risk—the shareholders." He added that "we are asking about the common sense of capital markets that employee performance compensation should also be decided on the transparent and legal judgment stand of shareholder meetings."
FAQ
What is Act demanding from the National Pension Service regarding Samsung Electronics bonuses?
Act is demanding that the National Pension Service, as a 7.9% stakeholder in Samsung Electronics, prevent the implementation of a bonus plan that would allocate 10.5% of business performance over 10 years without shareholder meeting approval. The platform collected signatures from 424 shareholders holding 207,724 shares and plans to submit a formal letter on May 20.
How much could Samsung Electronics DS division employees receive under the bonus plan?
Under the bonus agreement, DS division employees could receive up to 600 million won per person. The plan allocates 10.5% of business performance as bonuses over 10 years without an upper limit, and when combined with existing incentives, total resources reach 12% of business performance.
