For the first time since 2006, Hyundai Marine & Fire Insurance, which could not pay this year's performance bonus, will give employees a "special incentive for achieving 2026 goals" in the form of treasury shares. The management decided to return last year's regular bonuses.
On the 4th, Chief Executive Officer (CEO) Lee Seok-hyun of Hyundai Marine & Fire Insurance said in a CEO message, "We fell short of the criteria for paying performance bonuses and could not pay them, and we feel a heavy sense of responsibility and regret. To reward the efforts of our members and to achieve this year's management goals together, we will provide a special incentive in the form of treasury shares."
Hyundai Marine & Fire Insurance plans to distribute 1% (894,000 shares) of its treasury shares as an incentive, out of the 12.29% (10,985,500 shares) it holds. Based on the company's recent share price, it is said to be roughly equivalent to about one month's salary. At the regular shareholders meeting on the 20th, Hyundai Marine & Fire Insurance plans to approve this plan along with the cancellation of 9.29% (8,303,500 shares) of treasury shares over the next two years. The cancellation amount is about 285.2 billion won based on the closing price on Feb. 27. This follows the expected implementation of an amendment to the Commercial Act that mandates treasury share cancellations.
Chair Jeong Mong-yun, CEO Lee Seok-hyun, and Executive Vice President Jeong Gyeong-seon of Hyundai Marine & Fire Insurance decided to return their pay. In particular, Chair Jeong will return all of last year's regular bonus, while CEO Lee and Executive Vice President Jeong will return half. This is about 60% of Chair Jeong's pay received. For CEO Lee and Executive Vice President Jeong, it is about 35%.
A Hyundai Marine & Fire Insurance official said, "This decision reflects the management's sincere desire for joint growth with employees based on mutual trust," adding, "We expect it to be a new starting point toward the sustainable growth of the company and its employees."