Input 2021.03.17 14:34
Lee Boo-jin 4.9 billion won, Han In-gyu 2.5 billion won’Performance Pay Party’…50% higher than before Corona
Hotel Shilla “According to the business performance of the last 3 years”….It has nothing to do with last year’s performance
Due to the coronavirus infection (Corona 19), sales plummeted by 70-90%. Hotel Shilla (008770)The executives were found to have had a performance pay party. Due to the COVID-19 outbreak, general employees have reduced their labor costs due to working four days a week and paid vacations.
According to the distribution industry on the 17th, Hotel Shilla will submit an audit report on the receipt of billions of billions of incentives between Hotel Shilla President Lee Bu-jin and President Han In-gyu, who leads the duty-free shop, at a general shareholders’ meeting on the 18th. Is expected.
According to the audit report, CEO Lee received 4.892 million won in total, including 3,71 billion won in bonuses in addition to last year’s salary of 11.84 billion won. It increased by more than 50% from the previous year’s annual salary (about 3.2 billion won) before the corona crisis.
In addition to the Lunar New Year and Chuseok bonus, which is 100% of the monthly salary (99 million won), President Lee received a one-time special bonus. Regarding the reason for the payment of the special bonus, the company said, “By demonstrating our management capabilities and leadership in difficult external business environments, we achieved sales of 3,1881 billion won in 2020, and contributed to maintaining the competitiveness of each business and organizational stability for sustainable growth and development of the company. Was considered.”
President Han In-gyu also received special incentives for such encouragement, and executives such as the vice president and managing director also received bonuses of 200 to 800 million won. On the other hand, during the same period, the average salary of general employees was 50 million won, which was reduced by almost 20% compared to 2019 (about 59 million won).
Usually, incentives are calculated based on business performance such as sales and net profit. Last year, however, Hotel Shilla showed poor performance in both the hotel and duty-free shops. This is the aftermath of a sharp drop in the number of foreigners entering the country by nearly 90% due to the Corona 19 incident. The sales of the 3 trillion won level that Hotel Shilla achieved is a 44.2% decrease from 2019 (5,7173 trillion won). The company recorded a deficit for the first time since its inception.
The Shilla Duty Free Shop closed the cosmetics, fashion and liquor stores, which are considered the yolk of Incheon Airport Terminal 1, at the end of last month. This is because it gave up re-bidding of patent rights for duty-free business operators because it could not withstand the burden of fixed costs such as rental and labor costs compared to sluggish sales.
The hotel business is also not smooth. ‘Silla Monogram Danang’ in Vietnam, which opened to expand overseas business, has been suspended, and’Silla Stay San Jose’, which is being built in the United States, has been delayed.
This is why general employees are being criticized for having an unnamed performance-paid banquet by the owner’s family, President Lee Bu-jin and Hotel Shilla executives, while they are struggling with their belts due to leave of work.
this is AMOREPACIFIC (090430)It is also contrasted with the response of Amore retired for the first time in 75 years after its operating profit was cut in half due to Corona 19 last year. As such, Group Chairman Seo Gyeong-bae and AmorePacific President AmorePacific President AmorePacific cut 50% and 20% of the monthly salary received from AMOREPACIFIC for half a year, respectively. Incentive pay was also set at 0 won. Holding company AMOREPACIFIC Group (002790)The salary paid to Chairman Seo Lee also decreased from 633 million won to 538 million won.
For this reason, Chairman Seo’s total annual salary decreased by 40% from 3.7 billion won in 2019 to 2.21 billion won last year. President Ahn Se-hong also received an annual salary of 644 million won, a 37% decrease from a year ago.
Kim Woo-chan, head of the Economic Reform Association (Professor of Business Administration, Korea University) said, “The situation where the company’s situation is bad but the salary of the management only rises is a problem of the typical governance structure and the agent, where the interests of the management and the company’s interests do not coincide.” When the scale is more than 2 trillion won, the Audit Committee and the Outside Director Recommendation Committee are supposed to be established. In the future, this standard should be lowered to 1 trillion won and a compensation committee should be established so that executives can be responsible for setting salaries and bonuses.”
An official at Hotel Shilla said, “The amount set as a long-term performance incentive (bonus) among President Lee Boo-jin’s annual salary is based on management performance for the last three years (2017-2019). “If the 2020 results are reflected, the (executives’) salary will be adjusted in the future,” he said.