SK Hynix will implement its “Shareholder Participation Program,” which grants treasury inventory buy choices for efficiency bonuses, for the second consecutive 12 months following final 12 months. This can be a system designed to boost workers’ sense of belonging by linking performance-based compensation with treasury shares. As SK Hynix achieved record-breaking efficiency final 12 months as a result of excessive bandwidth reminiscence (HBM) growth, efficiency bonuses exceeding 130 million received per particular person are anticipated to be paid.
In line with the business on Jan. 16, SK Hynix notified its workers of the plan to implement the Shareholder Participation Program the day gone by. The appliance interval runs till Jan. 22.
Contributors within the Shareholder Participation Program can select to carry a portion (as much as 50%) of their extra revenue sharing (PS) in treasury shares. When treasury shares are held for one 12 months, a further 15% of the acquisition quantity is paid in money (premium). For instance, if an worker receiving a efficiency bonus of 100 million received participates in this system and chooses the utmost (50% of PS) in shares, shares equal to 50 million received can be granted. If these shares are held for one 12 months, 7.5 million received, which is 15% of the acquisition quantity, can be paid.
SK Hynix launched this technique in 2024, however as a result of semiconductor downturn on the time, solely comfort cash was paid with out PS, stopping the system from being carried out, and worker choices have been granted since final 12 months.
With the brand new standards agreed upon by labor and administration within the second half of final 12 months being utilized for the primary time on the finish of this month, the quantity of efficiency bonuses that SK Hynix workers obtain can be anticipated to extend considerably. Beforehand, by way of negotiations, labor and administration agreed to abolish the present PS fee restrict (most 1,000%) and use your entire 10% of the earlier 12 months’s working revenue as funding, with 80% of the PS calculation quantity to be paid within the present 12 months and the remaining 20% to be paid in deferred installments over two years (10% annually). The securities business expects that SK Hynix generated working revenue approaching 45 trillion received final 12 months. In easy calculations, the PS per member is estimated to be roughly 135 million received in complete.
Nonetheless, there may be additionally a chance that the system could also be canceled or diminished after this 12 months on account of Business Act amendments. If the treasury inventory cancellation mandate invoice at present being mentioned within the Nationwide Meeting passes, it could be tough to take care of this program using treasury shares. The Third Business Act Modification containing the treasury inventory cancellation mandate will endure legislative dialogue on the Invoice Evaluation Subcommittee 1 to be held on Jan. 21.
