Samsung Electronics plans to sell 344.5 billion won ($225 million) worth of treasury shares to fund performance bonuses for employees in its DX (Device eXperience) division and other units.
The company disclosed that it will dispose of 1,083,434 treasury shares on Wednesday to distribute stock to employees under this year's labor-management agreement.
The disposal is valued at about 344.5 billion won, based on Monday's closing share price of 318,000 won.
A total of 49,345 employees in the DX division and the CSS business team are eligible to receive the shares.
Samsung Electronics reached a tentative labor-management agreement on May 21, under which employees in the DS (Device Solutions) division — which handles the semiconductor business — would receive a special performance bonus equivalent to 10.5 percent of operating profit, while DX division employees and others would receive treasury shares worth 6 million won each as a gesture of mutual cooperation.
Late last month, the company notified DX division employees and other staff that each person would receive 22.65 shares as a performance bonus on Wednesday.
The 22.65-share figure was calculated based on a share price of 264,822 won as of May 27, the date the labor-management wage agreement was concluded. Of the total, 22 shares are to be paid in stock, while the remaining 0.65 shares will be paid in cash at 173,920 won.
As the share price has risen since the calculation date, DX division and CSS business team employees will receive treasury shares worth about 6,996,000 won — based on Monday's closing price — along with a cash payment of 173,920 won.
kimstar@heraldcorp.com
