Samsung Executives to Get Part of Bonus in Stock in Big Revamp
- Company is linking pay for senior executives to performance
- The overhaul comes as Samsung cedes market share to rivals
A Samsung store in Hong Kong.
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Samsung Electronics Co. has decided to pay part of executives’ bonuses in stock rather than cash for the first time, linking pay to share performance at a time the company is struggling with chipmaking.
The company will pay a portion of the annual bonus in shares to executives starting January next year, according to an internal posting confirmed by the company. The stock portion of the bonus — previously all cash — varies from 50% to 100%, increasing in proportion to seniority. Company officials will then be barred from selling those shares for one to two years, again depending on their rank.