Samsung rewards its employees with a bonus every January, with the amount being up to 50 percent of their annual salaries. This year is expected to be the same, despite the company witnessing a slowdown in chip and smartphone sales. However, there are still some differences in the bonuses being paid out to employees hailing from different divisions, which we will discuss here.
Samsung’s mobile division to receive a lesser amount, but it is still a remarkable percentage, considering the reduction in smartphone demand
As part of its overall performance incentive, or OPI for short, Samsung reportedly informed executives and employees about the company’s detailed plan for annual bonuses, according to industry sources that provided relevant information to The Investor. Out of the firm’s multiple divisions, employees currently stationed at the chip business will receive the highest bonus; 47-50 percent of their annual salary.
The bonus amount remains unchanged compared to the previous year. As for Samsung’s Mobile eXperience division, which is responsible for smartphones and tablets, the employees will receive between 29-33 percent of their annual salaries. It is surprising that even after witnessing a slump in smartphone demand, Samsung still chose to provide its employees with an annual bonus. This suggests that the company is likely making this decision for employee retention and has provided a notable incentive to push the teams to do even better this year.
As most of you know, Samsung will reportedly announce the Galaxy S23 series in the first week of February. Handing out bonuses just before the announcement of its flagship smartphone series is an excellent approach to push the staff to bring out the best of their individual abilities in an attempt to snare the market share from Apple and other competitors. Like the chip division, employees working at Samsung Display will be paid 47-50 percent of their annual salaries, up from 35 percent last year.
It will be the highest OPI rate in several years, and the increase happened because Samsung posted the highest quarterly operating profit of 1.9 trillion won ($1.5 billion) for the third quarter of 2022, so naturally, compensation was in order. Assuming Samsung’s Mobile eXperience division can recover lost market share in 2023, we might see the Korean giant approve an even higher bonus the next year.
News Source: The Investor