Samsung execs return 25% of bonuses after tepid Q2 results

Summary:Executives at Samsung Electronics’ mobile division returned 25 percent of their recent bonuses to take responsibility over lacklustre profits for the second quarter, reports ZDNet Korea’s Cho Mu-hyun.

Samsung said all senior executives at its handset business, including company co-CEO JK Shin, have returned a quarter of the Target Achievement Incentives (TAI) bonus they received on July 8.

samsungs-jk-shin
Samsung co-CEO JK Shin

TAI are bonuses given semi-annually by Samsung to departments or divisions within the company that reach their targets or perform outstandingly. They are graded as either A, B, C or D. Those who are judged in the A grade can receive up to 100 percent of their monthly base pay as bonuses.

Mobile division executives were graded A for their first half performances but volunteered to downgrade them to B and receive only 75 percent of their initial incentives.

It is speculated that over a hundred officials returned their bonuses.

Samsung launched its preliminary earnings estimate earlier this month and said profits would drop 24.5 percent to $7.1 billion due to a slowdown in its mobile business.

Senior executives have since then urged employees to work with urgency to overcome the situation as the market environment is expected to be remain unfavorable through the year.

The company is expected to announce the official results on July 31.

Source: ZDNet Korea (www.zdnet.kr)

Topics: Mobility, Korea

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