Samsung SDI will change the funding calculation standard for its performance bonus, the Over-Profit Incentive (OPI), from the existing Economic Value Added (EVA)-centered metric to operating profit. Among Samsung Group affiliates, this is the third time a company has switched the performance-bonus funding basis to operating profit, following the Samsung Electronics semiconductor institutional sector (DS) and Samsung Electro-Mechanics.
According to the industry on the 10th, Samsung SDI conducted a selection and consent process on the overhaul of the performance bonus system for executives and employees from the 1st to the 9th. As a result, 93.4% of participants voted in favor of switching to a method that links OPI funding to "10% of operating profit." Previously, "EVA 20" served as the OPI funding source.
OPI is a performance bonus system that pays up to 50% of an individual's annual salary once a year when the results of the affiliated business unit exceed the target set at the start of the year. Along with the Target Achievement Incentive (TAI), which is paid twice a year within Samsung Group, it is regarded as one of Samsung's representative performance bonus systems.
Samsung SDI has not been able to pay OPI to executives and employees of the battery business unit due to weak results over the past two years. However, as it turned to a profit in the second quarter this year and orders have increased based on the North American market, signs of performance improvement are emerging, drawing attention to whether OPI will be paid next year.
A Samsung SDI official said, "The key to this performance bonus system overhaul is simplifying the calculation standard and increasing predictability so that the company's performance improvement can directly lead to compensation for executives and employees," adding, "By strengthening rewards for performance, we aim to express confidence in the company's future vision while also preventing the departure of top talent."