Samsung Electronics will dispose of treasury shares worth 322.75594 billion won to fund executive long-term incentives (LTI).
Samsung Electronics said in a filing on the 13th that it will dispose of 1,132,477 treasury shares to strengthen executive accountability and motivate long-term performance creation. The planned disposal amount is 322.75594 billion won, and the disposal price was calculated based on the closing price of 285,000 won per share on the 10th, the trading day before the board resolution date.
A total of 928 executives are eligible for this treasury share payment. By simple calculation, the payment per person is about 347.8 million won. However, individual payout amounts vary by performance.
Samsung Electronics operates a long-term incentive (LTI) program for executives. The LTI is a performance compensation system that evaluates business performance over the past three years for executives who have served for at least three years and pays out annually over the next three years. Depending on performance, payouts can reach up to 300% of the average annual salary, with a portion paid in treasury shares instead of cash.
Samsung Electronics said, "The actual number of shares disposed of, the disposal price, and the disposal amount may change," and noted, "The shares slated for disposal are about 0.019% of the total issued shares, so any dilution of share value is expected to be minimal."