Silicon Works, an LG-affiliated fabless (semiconductor design company), pays its employees the highest level of incentives ever: 600% of the basic salary. It is in accordance with the management philosophy of Silicon Works CEO Son Bo-ik (pictured) that’we definitely compensate where there is performance.’
According to the industry on the 27th, the consensus of Silicon Works’ sales and operating profit last year (average estimates of securities companies) was 1,134.5 billion won and 105.5 billion won, respectively. From 2019, sales increased 30.8% and operating profit increased 123.2%. It is the first time since its inception that’sales exceeded 1 trillion won’.
Silicon Works, acquired by LG in 2014, focuses on designing and selling’display driving chips’ (DDI, semiconductors that transmit image signals) for smartphones and TVs. In 2019, it ranked third in the DDI market in terms of sales. It is scheduled to be incorporated as an affiliate of LG New Holding Company (tentative name), which will be launched in May, led by LG advisor Koo Bon-jun.
Silicon Works’ performance has increased by more than 10% on average since Son took office in 2017. As LG Display, a major supplier, supplied small and medium-sized OLED (organic light-emitting diode) panels to Apple, the DDI sales of Silicon Works also increased. It was also important to secure large Chinese panel makers such as BOE and CSOT as customers.
With the company’s record-high performance, Silicon Works employees have received heavy incentives. It is reported that President Son set ‘600% of the basic salary’ as an incentive and announced it to the employees that day. It is about 30% of last year’s annual salary. Some high performers receive an amount equivalent to 60% of their annual salary as an incentive.
Reporter Hwang Jeong-soo [email protected]
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