SK hynix plans to implement a "shareholder participation program" that grants a company stock purchase option for performance bonuses paid to employees in January this year.
According to the industry on the 16th, SK hynix notified employees of its plan to implement the shareholder participation program in an internal notice the day before, on the 15th. The application period runs until the 22nd.
The shareholder participation program is a kind of option that allows employees to choose and hold part of their profit sharing (PS) — up to 50% — in company stock. If the stock is held for one year, an additional 15% of the purchase amount is paid in cash as a premium.
PS is a performance bonus paid once a year based on annual results, up to 50% of annual salary (1,000% of base pay). Starting with the PS slated to be paid as early as the end of this month or early next month, the new PS payment standard agreed by labor and management in the second half of last year will apply.
Previously, through negotiations, labor and management abolished the existing PS cap (maximum 1,000%) and established a standard that uses 10% of the previous year's operating profit as the full funding source, pays 80% of the calculated PS amount in the current year, and defers the remaining 20% over two years (10% each year).
Employees participating in SK hynix's shareholder participation program can choose stock in 10% increments from a minimum 10% to a maximum 50% of PS. For example, if an employee receiving 100 million won in PS participates and selects the maximum (50% of PS) in stock, stock equivalent to 50 million won is granted.
However, from this year on, a proposed amendment to the Commercial Act appears likely to act as a variable in operating the program. Through the notice, the company informed employees that depending on whether the Commercial Act amendment is implemented, there could be changes to the shareholder participation program (downsizing or cancellation).
The "third Commercial Act amendment," which mandates the retirement of treasury shares, will undergo legislative deliberation at the Bill Review Subcommittee No. 1 on the 21st. If the National Assembly accelerates its discussions, it could be handled as early as this month or in March.