Debate over restructuring Samsung Group's performance bonus system spreads

Following the agreement on performancebased bonuses between Samsung Electronics and its labor union, discussions are continuing across Samsung Group affiliates on revising bonus systems. Samsung SDS is currently conducting a vote among employees on a plan to pay bonuses in company stock, while Samsung Display is reviewing a plan to adjust the conditions of its inhouse housing loan program. According to the industry on the 3rd, Samsung SDS is holding a vote on a reform plan that would replace the existing cash bonus with company stock paid once a year based on 20% of annual salary. However, there is also internal resistance to a method tied to stock prices, and the company says it will not push ahead with the system unless a majority of members agree. Samsung Display is discussing with its labor union a plan to limit the housing eligible for its lowinterest housing stability loan program to homes of 85㎡ or less in exclusive floor area in the capital region and metropolitan cities. Samsung ElectroMechanics has also finalized a plan to change the bonus calculation 기준 to 10% of operating profit, and Samsung affiliates are continuing the trend of adjusting compensation systems to be linked to performance.