It turned out that dozens of SK bioscience research and development personnel left the company in just three months. Some say the wave of departures by talent with bio knowledge and experience could affect the competitiveness of corporations.
◇ Fierce competition for bio talent… wave of departures among research staff
According to the Financial Supervisory Service's electronic disclosure system on the 25th, SK bioscience's research and development headcount stood at 289 at the end of the first quarter this year. That was down 36 (11%) from 325 at the end of last year. Other staff such as those with bachelor's degrees fell by 19, from 70 to 51. Those with master's degrees decreased by 16 (214→198), and those with doctorates decreased by 1 (41→40).
The bio industry says that even considering job changes, the large-scale outflow of personnel is unusual. At SK bioscience, the average pay per employee last year was 68 million won. Compared with Samsung Biologics at 114 million won and Celltrion at 107 million won, the average pay is not high. An SK bioscience official said, "We do not codify noncompete clauses within the industry when hiring," adding it was "a natural reduction in headcount due to resignations."
Competition to secure talent is intense in the bio industry. Because it can take more than 10 years from clinical trials to approval and commercialization in bio, it is important to retain key talent for a long time. However, compared with the pace of industry growth, the pool of talent with seasoned experience and knowledge is limited, inevitably fueling a battle for people.
◇ CEO Kim with a 100 million-won salary steps back; head of development also leaves executive post
SK bioscience also saw changes in its executive lineup. Kim Hun, head of global business, stepped down from his executive post at the end of March. Kim, who led the development of Korea's first homegrown COVID-19 vaccine "Skycovione," received 1.573 billion won in compensation last year. That includes 600 million won in salary, a 50 million won bonus, 901 million won in stock option exercise gains, and 22 million won in other benefits.
Formerly a Director General of research and development at GC Biopharma, Kim joined SK Chemicals in 2008 and served as head of bio. After SK bioscience was launched, he was promoted to head of global business, overseeing business, research and development, and manufacturing. Early this year, the company reorganized and created a chief operating officer (COO) position. Park Jin-seon, Deputy Minister of marketing and business development, was appointed COO and is integrating oversight of research and development, manufacturing, and commercialization.
Kim was subsequently reported to have stepped down from his executive role. He is still employed by the company, though no longer an executive. An SK bioscience official said, "The COO appointed this year has taken on a substantial portion of the duties," adding, "Kim's hands-on role has been reduced, but he is focusing on the company's future growth." The official added, "He is providing support on key decision-making matters."
In addition, Ryu Ji-hwa, head of development, also retired from the executive post at the end of last month. Ryu handled work related to varicella vaccine development last year but reportedly stepped back from frontline duties for health reasons. Ryu still belongs to the company and serves as an adviser.
◇ 17.1 billion won in treasury stock purchases → stock granted if employees serve three years
SK bioscience recently introduced a restricted stock unit (RSU) program amid these circumstances. Employees can receive company-held shares if they complete a minimum three-year mandatory service period. The plan is to motivate employees and encourage long-term service.
SK bioscience will use 17.1 billion won worth of treasury stock, to be acquired in tranches by July, as a pool for compensation. That equals 0.5% (390,000 shares) of total shares outstanding. An SK bioscience official said, "We offer various benefits, including flexible work arrangements and hub offices."
Meanwhile, SK bioscience posted 168.6 billion won in consolidated sales in the first quarter this year, up 9% from a year earlier. The operating loss widened to 44.5 billion won from 15.1 billion won a year earlier. The company said expenses were incurred for relocating the Songdo global research and process development (R&PD) center and developing a pneumococcal vaccine.