NH Investment & Securities said on the 13th that it has strengthened its in-house N2 stock compensation system-linked service so corporations can use it effectively as a compensation framework for employees' performance contributions.
A stock compensation system is a method in which corporations provide compensation to employees in forms such as restricted stock units (RSU), restricted stock awards (RSA), and operation of employee stock ownership associations. Global corporations are actively using this to secure key talent and drive long-term performance.
NH Investment & Securities explained that in Korea, after the recent passage of the third amendment to the Commercial Act made share cancellations of treasury shares mandatory, the introduction of compensation systems using treasury shares is expected to expand, drawing attention to the related market.
The company preemptively responded to this market change by forming a strategic business partnership last year with Quotalab, which has secured corporations in 11 countries and more than 23,000 clients. The N2 stock compensation system-linked service is an integrated, one-stop service that handles everything from consulting for operating the stock compensation system that corporations need, to administrative procedures such as granting stock (rights), to the final stage where employees trade the shares they have been granted.
The service streamlines everything from account opening to platform registration so corporate employees can easily use it. In a single account, general investment assets and compensated stock assets can be managed in separate balances. In particular, compensation in the form of "rights," such as RSUs that are not yet actual shares, is also shown as a balance.
Since launching the service last year, NH Investment & Securities has provided stock compensation system services worth about 13 billion won to roughly 4,500 employees, including those at Nexen Tire and Krafton. It is currently discussing introducing related services with several corporations.
Kang Min-hun, head of the digital business division at NH Investment & Securities, said, "The stock compensation system aligns the interests of corporations and employees and is a key means of driving long-term corporate growth," adding, "In particular, as the ways to use treasury shares are expected to diversify after the Commercial Act amendment, we will continue to expand our platform-based services so corporations and employees can use them conveniently."