“It was a one-way communication based on communication. (Joint statement of the Naver employee union)” Naver is suffering based on the criteria for calculating performance pay. Founders Lee Hae-jin, Naver Global Investment Manager (GIO) and Naver CEO Han Seong-suk, stepped up to appease employees with’stock options’, but the labor union regrets that the management did not give a specific answer regarding the incentives that triggered the conflict. Expressed.
At 2 pm on the 25th, Naver held an online internal meeting’Companion Day’. GIO Lee Hae-jin, CEO Han Sung-sook, and Chief Financial Officer Park Sang-jin (CFO) attended the event to explain the compensation philosophy and structure to 3,000 employees.
At the meeting, CEO Han Sung-sook said, “It is the characteristic of Internet business that it is not immediately visible as sales until a new challenge grows and bears fruit,” he said. “There is an additional need for compensation focusing on long-term growth.” “We are contemplating a differentiated new welfare system that is suitable for new global movements. In terms of total compensation, we will continue to strive to become the best in the industry.”
Naver appeases with stock options… Union “Do you choose only those that are advantageous and answer them?”
Earlier, the Naver Labor Union (Naver Branch of the Chemical Fiber Food Union of the Democratic Union of Trade Unions) sent an e-mail to the former employee on the 6th, saying, “It recorded the best performance ever, but the incentive pay is not close to that.”
Naver posted annual sales of 5,3041 trillion won and operating profit of 1,2153 billion won last year. This is an increase of 21.8% and 5.2%, respectively, compared to the same period last year. Despite the record high performance, the labor union was protesting against the decision to pay incentives comparable to the previous year. The below-expected annual salary increase also climbed on the cutting board.
As the labor-management conflict grew, Naver decided to hold an internal meeting in which GIO Lee Hae-jin and Han Seong-suk, CEOs of Naver, participated. It is known that this is the first time that Naver paid incentives and an additional briefing session was held.
The answer that Naver management gave to employees was the’stock option for all employees’. Since 2019, Naver has been giving stock options to all employees in addition to annual salary and incentives. On the 23rd, 3253 employees were given a total of 114143 stock options. The company’s position is that this is a rare case for a listed company with a very large market cap. CEO Han explained, “Because the’stock price’ rises when the challenges from years ago become visible to the outside, the future value is also shared by all employees with shareholders, an unprecedented compensation structure for a listed company.”
Founder Lee Hae-jin, Global Investment Officer (GIO), said, “One of the most joyful things this year is that, for the first time, we share the value with our employees as well as our shareholders through stock options for the achievements our employees have made in the past.” Said.
However, the union evaluated it as’one-way communication’. Immediately after the meeting, the Naver union said in an official position, “The labor union expresses deep regret for the unilateral communication of the company based on communication.” △ Disclosure of the exact amount and ratio of employee incentives that were officially requested △ Unilateral movement of personnel △ Unfairness of compensation for executives and general employees △ Rethinking of incentive ratios △ Differential compensation for each job group △ Clear answer to the issues such as distribution of each other It is pointed out that it did not release.
An official from the union criticized “The company externally gave meaning to the briefing session, saying that the founder and the CEO directly engaged in’communication’, but it was a one-sided stance. did. Accordingly, the union demanded that the Companion Day be extended to all affiliates, and expressed its intention to act in various ways until solutions to various problems such as unfair compensation and discrimination of affiliates’ employees delivered to the management are prepared.
Meanwhile, GIO Lee Hae-jin on the day said, “I am always thinking about strategic investment rather than financial investment for the business.” Two weeks later, GIO Hae-jin announced that it would create a place to share in-house about global challenge strategies.