Samsung Electronics executives received treasury stock grants as long-term incentive compensation, according to a July 21 disclosure on the Financial Supervisory Service's electronic filing system. The company distributed 1,132,477 common shares to 928 executives and employees as Long-Term Incentive (LTI) payments, valued at approximately 288.22 billion won based on a per-share grant price of 254,500 won. CEO and Device Experience (DX) Division Head Roh Tae-moon received the largest allocation at 22,678 shares, equivalent to approximately 5.77 billion won. The stock-based LTI program, introduced last year to strengthen executive accountability and promote long-term performance, replaced a portion of previously cash-only incentive payments.
Samsung Electronics Distributes LTI Stocks to 928 Executives
Samsung Electronics [005930] distributed 1,132,477 common shares to 928 executives and employees through its LTI program. The per-share grant price was set at 254,500 won, resulting in a total distribution value of approximately 288.22 billion won.
CEO Roh Tae-moon received 22,678 shares, the highest allocation among senior management, worth approximately 5.77 billion won at the grant price. Vice Chairman and Device Solutions (DS) Division Head Jeon Young-hyun received 10,469 shares, equivalent to approximately 2.66 billion won. Vice Chairman Chung Hyun-ho received 13,419 shares, valued at approximately 3.41 billion won.
Business Support Office Head Park Hak-kyu received 9,819 shares worth approximately 2.5 billion won. DS Division Management Strategy President Kim Yong-kwan received 9,990 shares, equivalent to approximately 2.54 billion won.
Samsung LTI Program Structure and Calculation Method
Samsung Electronics announced on July 13 that it would dispose of 1,132,477 treasury shares to strengthen executive accountability and encourage long-term performance creation. The initially announced disposal amount was 322.756 billion won, calculated using the previous trading day's closing price of 285,000 won before the board resolution. The actual grant price was determined at 254,500 won, resulting in a final distribution value of approximately 288.2 billion won.
The company evaluates executives who have served for three or more years based on the previous three years of business performance. LTI is set at 0-300% of average annual salary and paid out over the following three years.
Samsung Electronics introduced the stock-based LTI system last year to enhance executive accountability and shareholder value, converting a portion of previously cash-only LTI payments into company stock. During the first stock grant last year, 622 executives received a total of 51.36 billion won. This year, the number of recipients increased to 928, and combined with significant stock price appreciation, the total distribution scale expanded more than fivefold compared to last year.
FAQ
What did Samsung Electronics distribute to executives on July 21?
Samsung Electronics distributed 1,132,477 common shares to 928 executives and employees as Long-Term Incentive (LTI) payments. The distribution was valued at approximately 288.22 billion won based on a per-share grant price of 254,500 won. CEO Roh Tae-moon received the largest allocation at 22,678 shares.
How does Samsung Electronics calculate Long-Term Incentive payments?
Samsung Electronics evaluates executives who have served three or more years based on the previous three years of business performance. LTI is set at 0-300% of average annual salary and paid out over the following three years. The company introduced stock-based LTI payments last year, converting a portion of previously cash-only incentives into company stock.
