Samsung Electronics executives receive billions in long-term incentive shares

Samsung Electronics co-CEOs Jun Young-hyun and Roh Tae-moon received company shares worth 2.66 billion won ($1.75 million) and 5.77 billion won, respectively, as part of the company's long-term incentive program.

Samsung Electronics disclosed Tuesday the executives and details of those who received company shares as part of their long-term incentive payouts. A total of 928 executives and other eligible employees were included in the distribution.

Earlier, on July 13, Samsung Electronics announced it would dispose of 1,132,477 treasury shares to pay out a portion of its long-term incentive compensation in company stock, aiming to strengthen executive accountability and motivate long-term performance.

Under the distribution, Roh, who heads the DX (Device Experience) division, received 22,678 shares. Based on the reference share price of 254,500 won, the stake is valued at 5.77 billion won. Jun, who leads the DS (Device Solutions) semiconductor division, received 10,469 shares worth 2.66 billion won.

Other recipients included Park Hak-gyu, president and head of the Business Support Office, who received 9,819 shares worth 2.5 billion won; Kim Yong-kwan, president overseeing management strategy for the DS division, who received 9,990 shares worth 2.54 billion won; and Chung Hyun-ho, vice chairman and aide to Samsung Electronics Chairman Lee Jae-yong, who received 13,419 shares worth 3.42 billion won.

Samsung Electronics operates a long-term incentive system that pays executives with at least three years of service a performance-based reward — calculated at between 0 and 300 percent of average annual salary — distributed over three years based on results from the preceding three years. Starting last year, the company revised the system to allow a portion of the long-term incentive to be paid in company shares, as part of efforts to strengthen executive accountability.