The Device Solutions (DS) institutional sector in charge of Samsung Electronics' semiconductor business will receive 43%–48% of annual salary as a performance bonus this year. As results improved significantly on the back of standard DRAM and high-bandwidth memory (HBM), the payout rate was greatly expanded from last year's 14%.
On the 30th, according to the industry, Samsung Electronics notified employees of the expected overachievement performance incentive (OPI) payout rates by business division. OPI is a performance bonus paid once a year at up to 50% of an individual's annual salary within 20% of excess profit when the division's results exceed the annual target. The final payout rates by division will be confirmed in Jan. next year.
The DS institutional sector had maintained high payout rates in the past, receiving 50% of annual salary for the 2022 OPI, among others. However, as the semiconductor downturn took hold in 2023, the DS institutional sector posted a 1.488 trillion won loss and the OPI payout rate was set at 0%. It returned to profit in the first half of last year, but the 2024 payout rate was just 14%.
This year, the rise in standard DRAM prices and expanded supply of HBM3E (5th generation) combined to sharply improve results. The securities market expects operating profit at Samsung Electronics' memory division to increase from about 6.35 trillion won in the first half of the year to more than 23 trillion won in the second half, approaching 30 trillion won for the full year. The OPI payout rates for the System LSI and foundry divisions were also said to have risen slightly.
The Mobile eXperience (MX) division received an expected OPI payout rate of 45%–50%, helped by strong sales of the Galaxy S25 series and foldable phones. Last year's payout rate was 44%. In contrast, the Visual Display (VD) division in charge of the TV business fell to 9%–12% this year from 27% last year.
The home appliances (DA), network, and medical devices divisions were set at a similar 9%–12% level as last year. Samsung Display received 32%–36%, and Samsung Electro-Mechanics received an expected OPI payout rate of 5%–7%. Last year's payout rates were 40% and 5%, respectively.