SK hynix’s performance pay controversial group spreads.. A letter to SKT union chairman Park Jeong-ho
In the News Reporter Kwon Ji-youngㅣRecently, the redundant controversy over performance pay at SK Hynix has shifted to SK Telecom. The controversy over incentives between SK Group’s two key companies is spreading throughout the group.
Previously, SK Group Chairman Choi Tae-won and SK Hynix CEO Lee Seok-hee stepped up to appease employees, but dissatisfaction with incentive pay is rising.
According to the telecommunications industry on the 4th, in a letter to CEO Park Jung-ho in the name of the Chairman of the Transition Committee’s labor union, SK Telecom pointed out that “there is serious concern about the incentives that are expected to decrease significantly from last year.”
On the 3rd, SK Telecom announced on the 3rd that it recorded 18,6247 billion won in sales and 1,349.3 billion won in operating profit last year. Compared to the previous year, sales increased 5% and operating profit increased 21.8%, respectively.
According to the union, incentives are expected to decrease significantly this year compared to last year. The union said, “In recent years, even though the incentives that have decreased little by little each year, members have thought that it was due to the worsening of the company’s performance. I don’t.
Prior to this, SK Telecom decided to pay 30 billion won worth of treasury stock to employees on the 2nd. SK Telecom has established a treasury share incentive payment system, and you can choose between cash or treasury stock as a bonus. If you receive incentives as treasury stock, you can receive an additional 10% of the value of the acquired stock held for one year.
The union has urged the company to rethink the size of its incentives this year. The union demanded that “a level of understanding and sympathy for the members who did their best in difficult conditions should be presented.”
Specifically, ▲ disclosure of the correlation between performance and incentives to secure predictability and objectivity ▲ disclosure of the average amount of company-wide incentives to ensure fairness of individual and organizational performance ▲ overall reorganization of the existing incentive system, where most members fall below the average amount Presented.
The union said, “Before implementing incentive payments, companies must have clear explanations and answers about payments so that members can understand.”