Not all is well at Samsung after agreeing to a new incentives deal, with the South Korean tech behemoth now having to contend with not only intra-divisional resentments due to the massive difference in the implied incentives of the semiconductor division and its Device Experience (DX) counterpart, but also shareholder wrath, with one group of shareholders going so far as to unabashedly term the still-fledgling deal "illegal."
Samsung is facing a multi-vector pushback from ex-semiconductor division employees and shareholders on the windfall that its memory- and chip-focused workers now stand to accrue
According to South Korea's Yonhap, Samsung's semiconductor employees are now all set to receive a special performance bonus that is equal to 10.5 percent of the tech behemoth's annual operating profits, provided that such profits exceed 200 trillion won ($132 billion) from 2026 to 2028 and 100 trillion won ($66 billion) from 2029 to 2035. Do note that at least some of these bonuses will be paid in the form of shares.
Given the current expectations that Samsung will earn an operating profit of around 300 trillion won ($198 billion) this year, each memory-focused employee stands to take home around 600 million won ($397,751) in bonuses this year alone.
Do note that Samsung's semiconductor division workers will also get a 40 percent share of the company's total bonus pool, which is separate from the special bonus scheme that has been linked to the company's annual operating profit.
These incentives are now triggering widespread angst among Samsung employees working in other divisions, and can trigger the company's subcontractors to demand a bigger share of the proverbial pie as well.
What's more, even Samsung's shareholders are now chiming in, brimming with anger and resentment, with at least one group of shareholders going so far as to declare the incentives package "illegal," while expressing its intentions to take the company to the court.
As we noted on Wednesday, Samsung's unionized workers will be able to vote on the deal, beginning at 09:00 a.m. on May 21 and lasting through 10:00 p.m. on May 28. However, given the ensuing pushback, there's a material probability that the deal might not be approved by a majority of Samsung's unionized workers.
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