As Samsung SDS holds a companywide vote on a personnel policy overhaul that would convert part of cash performance bonuses into company stock, controversy is growing amid claims that some managers urged employees to vote in favor or pushed them to participate. The company said it extended the voting period to collect opinions and would not introduce the system without the consent of a majority of employees.
According to the industry on the 30th, Samsung SDS has been conducting a yes-or-no vote on the personnel policy overhaul for all employees since on the 24th. The vote was initially scheduled to close that day, but the company has extended the period to July 7 to fully listen to employees' opinions.
According to multiple sources, during the voting period the Samsung SDS System Overhaul TF encouraged participation in the vote by calling employees and sending text messages with guidance on the overhaul. However, some employees claim they are being pressured not only to vote but to cast yes votes. On an anonymous communication channel with more than 2,600 employees participating, posts alleged that some managers told team members to "vote in favor" and that "it could affect future performance reviews."
The overhaul would abolish the existing cash performance incentive (PI) and completely revamp the bonus system by paying the equivalent of 20% of annual salary in company stock. It would take effect immediately if a majority of employees vote in favor. Opponents point out issues including that 70% of the performance bonus calculation would be tied to external indicators such as the company's stock price and the industry index, and that the existing performance incentive would be excluded from severance pay calculations.
The company reportedly answered inquiries about the overhaul on the internal employee portal by saying it would not force the change "without the consent of more than 50% of employees."