Samsung rewards its employees with a bonus each January, amounting to 50 percent of their annual salary. This year is expected to be the same, although the company is seeing a slowdown in chip and smartphone sales. However, there are still some differences in the bonuses paid to the employees belonging to different departments, which we shall discuss here.
Samsung’s mobile division will get a smaller amount, but it’s still a noticeable percentage, given the lower demand for smartphones
As part of the overall performance incentive, or OPI for short, Samsung reportedly communicated to executives and employees the company’s detailed annual bonus plan, according to industry sources who provided relevant information to the investor. Among the company’s multiple divisions, employees currently stationed in the chip business will receive the highest reward; 47-50 percent of their annual salary.
The bonus amount remains unchanged compared to the previous year. For Samsung’s Mobile eXperience division, which is responsible for smartphones and tablets, employees will receive between 29 and 33 percent of their annual salary. Surprisingly, even after seeing a drop in smartphone demand, Samsung still chose to give its employees an annual bonus. This indicates that the company is likely to make this decision to retain employees and has provided a significant incentive to drive teams to work better this year.
As most of you know, Samsung will announce the Galaxy S23 series in the first week of February. Distributing bonuses before announcing a flagship smartphone series is an excellent approach to push employees to bring out their individual best abilities in a bid to capture market share from Apple and other competitors. Like the chip division, employees working for Samsung Display will take between 47 and 50 percent of their annual salary, up from 35 percent last year.
This would be the highest OPI rate in several years, and the increase occurred because Samsung posted its highest quarterly operating profit of 1.9 trillion won ($1.5 billion) for the third quarter of 2022, so naturally, compensation was required. Assuming Samsung’s Mobile eXperience division can recover lost market share in 2023, we may see the Korean giant agree to a higher bonus next year.
News source: the investor