SK bioscience is introducing a stock compensation program for employees to pursue responsible management and enhance shareholder value.
The company disclosed on the 28th that it will buy back about 17.1 billion won of its own shares by July to implement a restricted stock units (RSU) program. The purchase volume is about 390,000 shares, roughly 0.5% of total shares outstanding, to be acquired in tranches starting this month. All repurchased shares will be used as a pool for employee compensation.
An RSU grants shares only when certain conditions are met, and unlike stock options, which are tied to short-term share prices, it is a compensation system that aligns the interests of employees and shareholders over the long term. The company said it plans to use this to encourage members to participate more actively in boosting corporate value over the mid to long term.
Under an agreement with the company, employees must complete a minimum mandatory service period of three years to receive shares. The company aims to encourage long-term retention of key talent and strengthen the foundation for mid- to long-term growth.
SK bioscience is pursuing a mid- to long-term growth strategy with the goal of becoming a global vaccine company. GBP410, a 21-valent pneumococcal conjugate vaccine candidate being co-developed with Sanofi in France, is in global phase 3 trials, and the company is also expanding its next-generation pipeline, including a universal COVID-19 vaccine, a respiratory syncytial virus (RSV) preventive antibody, and a patch-type flu vaccine.
The company said the RSU program establishes a structure in which employees receive tangible rewards if pipeline results translate into higher corporate value.
Ahn Jae-yong, president of SK bioscience, said, "We will lay the groundwork for shareholders and members to grow together through a compensation system that links performance with corporate value," adding, "We will continue to strengthen execution of our mid- to long-term growth strategy."