Samsung Electronics has decided to implement a performance share unit (PSU) program to motivate employees, enhance shareholder value, and generate mid- to long-term results.
According to the industry on the 14th, Samsung Electronics announced internally that it would implement a PSU that grants treasury shares to employees based on the stock price increase over the next three years. The PSU Samsung Electronics is introducing this time compensates with shares linked to the company's future performance. Samsung Electronics had been operating an excess profit incentive (OPI) program that rewards short-term performance over the past year.
Accordingly, Samsung Electronics will commit this month to grant 200 shares to CL 1–2 employees and 300 shares to CL 3–4 employees, confirm the number of shares to be granted based on the stock price increase after three years, and pay them in equal installments over three years starting in 2028.
The payout multiple based on the stock price increase will be determined by comparing the reference price on the 15th with the reference price on Oct. 13, 2028: ▲ less than 20% increase, 0x ▲ 20% to less than 40%, 0.5x ▲ 40% to less than 60%, 1x ▲ 60% to less than 80%, 1.3x ▲ 80% to less than 100%, 1.7x ▲ 100% or more, 2x. The reference price is calculated as the arithmetic average of the volume-weighted average prices over 1 week, 1 month, and 2 months prior to the reference date.
On the day, Samsung Electronics closed at 91,600 won, and in this case, the PSU reference price is estimated to be around 85,000 won. Assuming the stock price doubles on Oct. 13, 2028, it would be about 170,000 won per share, and CL 3–4 employees would receive 600 shares.
Starting next year, Samsung Electronics plans to improve the system so that employees can receive part of their excess profit incentive (OPI) in shares instead of cash. Samsung Electronics has been implementing an OPI stock compensation program for executives since January to strengthen accountable management, and it will expand this to employees.
Employees can voluntarily choose the stock compensation rate for 0%–50% of their OPI in 10% increments. Employees who choose to receive part of their OPI as stock will receive an additional 15% of the stock compensation amount in shares on the condition that they hold them for one year.