Samsung Electronics has abolished a rule requiring executives to take performance bonuses in its own shares and has given all employees the option of stock-based compensation. The business community said on Jan. 12 that Samsung Electronics recently announced an overhaul of its 2025 employee performance bonus (OPI) stock compensation system.

Under the revised plan, all employees can choose to receive 0 to 50 percent of OPI in company shares in 10 percent increments. Those who want to can receive the entire bonus in cash, and those choosing a one-year holding condition receive an additional 15 percent of the stock compensation amount. This year's bonuses are due to be paid on Jan. 30.

Last year, Samsung Electronics required executives to take 50 to 100 percent of their bonuses in company shares by rank. It was aimed at strengthening accountable management. At the time, Samsung Electronics shares were in the 50,000 won range. The condition was to receive shares after one year: at least 50 percent for executive directors, at least 70 percent for senior executive vice presidents, at least 80 percent for presidents, and 100 percent for registered executives. It also included a clause to reduce the number of shares paid if the stock price fell.

Samsung Electronics shares have been rising this year, topping 140,000 won. Improved results and a sharp rise in the share price can be seen as the background to the policy change.

Samsung Electronics' position is that it will maintain accountable management through its performance share unit (PSU) system introduced in October last year. Under the PSU system, no shares are paid if the share-price increase rate after three years is less than 20 percent, and double is paid if it rises 100 percent or more. The intent is to directly link share-price performance and compensation to encourage long-term performance creation.