Samsung DS Bonus in Treasury Shares Requires March Vote
Samsung Electronics disclosed on the 7th that its DS division bonus will be paid in treasury shares, pending shareholder approval at the March meeting.
Samsung Electronics disclosed on the 7th that a special performance bonus for its DS division will be paid in treasury shares, according to inews24.com. The bonus is funded by 10.5% of the DS division's 2026 operating profit.
The payment will be made in Samsung Electronics treasury shares after deducting taxes, insurance and donations. One third of the shares can be sold immediately, while the remaining portions are locked for one and two years respectively.
Payment rates by business unit will be finalized in early February next year, approved at the March regular shareholders' meeting, and paid between late March and early April.
Under the Commercial Act amended in March this year, Samsung Electronics requires shareholder approval of a treasury share disposal plan to pay the bonus in treasury shares. The detailed plan disclosed on the 7th contains no alternative payment method if shareholder approval fails.
Background
SK hynix president Kwak Noh-jung has previously stated that promised bonuses will be paid entirely in cash even if the treasury share payment plan is rejected at the shareholders' meeting. Jeon Young-hyun is the vice chairman and CEO of Samsung Electronics leading the DS division.
Quick answers
When will Samsung pay the DS division bonus?
Payment rates by business unit will be finalized in early February next year, approved at the March regular shareholders' meeting, and paid between late March and early April.
How is the DS bonus funded?
The bonus is funded by 10.5% of the DS division's 2026 operating profit, according to a disclosure on the 7th.
What happens if the treasury share plan is not approved?
The detailed plan contains no alternative payment method if shareholder approval fails. SK hynix president Kwak Noh-jung has stated that his company's promised bonuses will be paid entirely in cash if a similar plan is rejected.