Samsung Electronics considers share buyback for stock bonuses, details undecided

By Heejin Kim and ‌Hyunjoo Jin

SEOUL, ​June ​24 (Reuters) - Samsung Electronics said on Wednesday it was considering buying back shares to fund stock-based employee compensation ‌tied to its 2026 performance, but that no ⁠details including timing or size of the buyback had been decided.

The clarification ‌came in a regulatory filing ‌after local media reported that Samsung would buy back 90 trillion won ($58.61 billion) worth of shares from next month.

Samsung's ​management and union last month reached a pay deal under which Samsung is expected to set aside about ⁠10.5% of its annual operating profit for special bonuses for the chip division in ​the form of stocks, sparking concerns over inequality at the company.

Employees at Samsung will be able to ​immediately sell a third of ‌the treasury shares they receive as bonuses, but they will have to wait a year to ⁠sell another third and a further year for the remainder.

Samsung also may need to repurchase additional stocks to award employees under a ⁠separate compensation programme, called the "Performance Stock Unit," which was introduced last October ​to align employee rewards with long-term stock performance.

Samsung Electronics and chip rival SK Hynix are expected to post record profits this year and ‌next year, as the AI boom has fueled a shortage of memory chips, driving up prices.

Samsung ‌shares closed up 9.8%, outperforming SK Hynix's 1% gain and ⁠reclaiming the top spot ‌by common-share market capitalisation ​in South Korea.

($1 = 1,535.6000 won)

(Reporting by Heejin Kim, Hyunjoo Jin and Joyce LeeEditing by Ed Davies, Elaine ‌Hardcastle)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Exclusive-ICC bureau says Khan should be fired for inappropriate sexual relationship
• Morning Bid: Bubble or blasphemy?
• Exclusive-Binance vows to stay in Europe despite licence setback