SK hynix employees afflicted with half of Samsung’s incentives
Lee Seok-hee “Transparent communication with performance pay that meets expectations for this year”
Choi Tae-won “Returns all SK Hynix annual salaries”
SK Group Chairman Choi Tae-won is greeting at the M16 completion ceremony held at SK Hynix headquarters in Icheon, Gyeonggi-do on the 1st./Photo provided by SK Hynix
Following SK Group Chairman Choi Tae-won, Lee Seok-hee SK Hynix(130,000 0.00%) Even the president went out to appease the complaints of executives and employees regarding the payment of incentives last year.
Seok-hee Lee, President of SK Hynix/Photo Credit=SK Hynix
According to SK Hynix on the 2nd, CEO Lee Seok-hee said in an in-house message in the form of responding to the requests of members, saying, “I am saddened by the dissatisfaction you have felt since the announcement of the payment of excess profit distribution (PS) last week.”
Earlier, on the 28th of last month, when SK Hynix announced that it would set the PS scale to 20% of its annual salary (400% of the basic salary), internal complaints arose. This is because even though the performance exceeded the previous year, it was only half of that of Samsung Electronics’ semiconductor department, and the calculation method was also not transparent. Samsung Electronics’ DS division paid 47% of its annual salary as an incentive.
When the amount of incentive payments was disclosed, a number of posts from employees asking to disclose the company’s incentives calculation method were posted on the company’s bulletin board and anonymous community’Blind’.
The union held an unusual picket demonstration, and an internal complaint email written by a fourth-year employee was publicly disclosed. SK Hynix’s annual operating profit was 5,126 trillion won, an 84% increase from the previous year.
President Lee said, “I regret not being able to communicate enough in advance and that PS was not able to live up to expectations.” “I will.”
He added, “It will take a lot of time and effort to resolve misunderstandings between labor and management and rebuild trust,” he added. “From this year onwards, we will announce the future incentives in advance and communicate transparently.” President Lee also said, “I look forward to this year that the management and members will work together to deliver incentives that meet my expectations.”
Prior to this, SK Chairman Choi Tae-won also said that he would return all the salary he received last year. Chairman Choi made a remark at the ceremony for the completion of the M16 semiconductor plant the day before, with the intention of “I will return all the salary I received from SK Hynix last year and share it with the employees.”
Among Chairman Choi’s annual salary, SK Hynix’s compensation amount is about 3 billion won in 2019. If this is distributed equally to 28,000 Hynix members, it is about 100,000 won per person. Chairman Choi is receiving remuneration from group holding companies, SK Corp. and SK Hynix. However, it is reported that SK Hynix has decided not to review the method of collectively paying the same amount to all employees.
Chairman Choi is known to have said, “I think it is a regrettable task to overcome in relation to performance pay,” and “I think I need more empathy, and I try to blame myself.”
He said, “I worked hard to solve this problem, but the specific utilization plan was not confirmed, but first of all, I would like to return the rewards received from Hynix last year to the members.”
However, even though the executives tried to appease the members in this way, the complaints of internal employees seem to seldom subside. Unfortunately, among some employees, it is reported that Samsung Electronics and Micron, which started hiring career positions from the previous day, have been receiving certifications for job transfers.
Seongsu Bae, reporter Hankyung.com [email protected]