Park Jeong-won, chairman of Doosan Group, received 45.58 billion won in compensation in the first half of this year. Doosan's share price surged, boosting the value of the restricted stock units (RSUs) granted three years ago.
According to Doosan Co.'s semiannual report on the 14th, Park received 1.82 billion won in salary, 6.17 billion won in short-term incentives, and 37.59 billion won in RSUs in the first half of this year, for a total of 45.58 billion won in compensation.
The increase in compensation was due to the jump in the value of RSUs granted three years ago. Doosan overhauled its long-term incentive program in 2022, which had paid cash to executives. Under the change, it operates an RSU program that grants shares subject to a three-year transfer restriction instead of cash. The granted shares are paid after conditions such as a certain period of service are met.
The RSUs reflected in first-half compensation are 32,266 Doosan shares that Park was granted in 2023. Applying the then-reference share price of 80,816 won, they were worth about 2.84 billion won. However, when they were actually delivered in February this year, Doosan's share price rose to 1,165,000 won, lifting the RSU valuation to 37.59 billion won. As the share price climbed to 13.2 times the grant-time level, the RSU valuation increased by the same magnitude.
Salary and short-term incentives were similar to last year's levels. In the first half of this year, Park received 1.82 billion won as salary and 6.17 billion won as short-term incentives. In the first half of last year, salary was 1.753 billion won and short-term incentives were 14.557 billion won.