[단독]“Annual Salary King” Samsung Man is also angry. “Disclose incentive calculation criteria”

At Samsung Electronics’ official discussion of wages and welfare conditions this year, a claim was raised that “make the incentive system transparent and improve the system.” There was a complaint from SK Telecom, saying, “The scale of incentive pay is likely to decrease compared to our performance.” Following SK Hynix,’Performance Pay My Hong’ is spreading to major conglomerates.

According to Samsung Electronics and related industries on the 4th, it was confirmed that during the ‘2021 Wage and Welfare Consultation’ conducted by the Samsung Electronics Labor-Management Council, the employee’s representative asked “to make the calculation standards of performance pay transparent.”

According to a business official familiar with Samsung, the Samsung Electronics Labor-Management Council will discuss this year’s salary base-up (overall wage increase including senior salaries), overtime and overtime ranges, and improvement of the pension system from the 20th of last month to the end of this month. The official said, “From the 3rd of the major agendas, transparency in the calculation standards for OPI and improvement of related systems were included.”

After paying incentives on the 29th of last month, among employees in the DS division in charge of semiconductors, voices were poured out, saying, “We made more than half of the operating profit, but the compensation was insufficient.” Accordingly, it is known that the employee’s representative has put the improvement of the incentive system on the official agenda.

According to business officials, the employee representative argued that “the OPI calculation standard should be transparently improved and the scale of payment should be reviewed.” Samsung Electronics was the first in Korea to systematize the incentive system. In particular, OPI, which was introduced in 2013, has been regarded as a’object of envy’ among office workers. OPI pays up to 50% of each individual’s annual salary within 20% of the excess profit when it exceeds the target profit at the beginning of the year.

Last year, Samsung Electronics generated operating profits of 18.81 trillion won, 3.5 trillion won, and 11.47 trillion won in DS, consumer electronics (CE), and smartphone (IM) sectors, respectively. More than 50,000 people in the DS division received 47% of their annual salary as incentives. Compared to the IM division and the video display division each receiving 50%, there was a movement in the inside saying that “your pride is hurt”.

An official from Samsung Electronics, who wanted to remain anonymous, said, “It wasn’t possible to reveal it because of the social atmosphere, but it is internal public opinion that it’s’blowing up’,” and said, “In particular, SK Hynix’s request for the disclosure of the performance-based pay standard would have been a stimulus. Another Samsung official also explained, “(The employee representative) seems to have decided that it is time to discuss fair performance measurement and rational allocation of excess profits.”

In a phone call from the JoongAng Ilbo on the same day, Jin Yun-seok, chairman of the National Samsung Electronics Union, said, “There has been a consensus that the OPI calculation method should be improved within electronic affiliates for a long time. However, the management has drew a line saying that it is’a problem related to management rights.’ Chairman Jin also announced a plan to jointly respond with other electronic affiliates.

Samsung Electronics divides into semiconductor and set (finished products) divisions, and holds a labor-management council to determine wages and welfare conditions. From the management side, personnel and labor managers participate, and from the labor side, more than 70 employee representatives elected by employee voting participate. Apart from this, it is currently negotiating collectively with four unions. Samsung Electronics’ vice chairman Lee Jae-yong declared last year’no union management’.

In response to the insistence on’improving the incentive system’ by the employee representative and the union, Samsung Electronics is in the position that “incentive pay is the company’s own authority. It is known that Samsung Electronics is notifying its employees of the expected rate of incentive payment in advance and can be checked individually.

Experts agree with transparent performance management, but have different opinions on disclosing the system. “In order to minimize side effects, it is necessary to set clear goals in the beginning,” said Choi Seung-cheol, head of HR research institute. Professor Lee Kyung-mook of Seoul National University School of Business said, “Incentives cannot be viewed as a matter of agreement between labor and management. In particular, it is a kind of business secret that is linked to investment plans, so the claim to disclose them in detail is excessive.”

Meanwhile, the labor and management of SK Hynix, who suffered a conflict over the scale of incentives, said, “We changed the calculation standard for excess profit distribution (PS) from economic added value (EVA) to a plan to link operating profits. It agreed to issue a key share.”

SK hynix employees have been protesting, saying, “Operating profit has doubled compared to last year, but the incentive pay is the same as last year (20% of the annual salary), so I cannot understand it.” SK Chairman Choi Tae-won also went on to evolve, saying, “I will return my salary.”

SK Telecom also heard a bursting sound. The company posted an operating profit of 1,343.9 billion won, an increase of 21.8% over the previous year. It also launched a’member shareholder participation program’ that divides incentives into cash and stocks. However, some of the employees who received treasury shares complained that “the amount is less than last year.” The union sent a letter to CEO Park Jung-ho stating that “the amount must be at a level that members can understand and relate to.” CEO Park said, “Social values ​​are not well reflected. “Let’s make more efforts to improve the company’s growth and development and corporate value”

Reporter Park Hyung-soo [email protected]