Kim Ki-nam, Vice Chairman of Samsung Electronics▶ Click here for a larger view
In the midst of the US-China trade conflict and the Corona 19 pandemic, the annual salary of major executives at Samsung Electronics, which led to a surplus of 36 trillion won last year, doubled.
According to documents submitted by Samsung Electronics to the Financial Services Commission and the Korea Exchange on the 18th, the total amount of remuneration paid by the company to 11 registered directors (5 inside directors and 6 outside directors) including Vice Chairman Kim Ki-nam last year was totaled at 33.7 billion won.
Considering that Samsung Electronics paid a total of 17.9 billion won to 11 registered directors in 2019, it has doubled.
Most of the increased remuneration is the responsibility of the company’s main management, internal directors.
In the case of outside directors, the remuneration is fixed according to the’Outside Director Treatment Regulations’, but the remuneration for inside directors is’target incentive’, which is paid twice a year within 200% of monthly salary, and’performance incentive’ within 50% of annual salary, and yield It depends on the’long-term and incentives’ that are paid in installments for three years.
Former Minister of Strategy and Finance, Park Jae-wan, and six outside directors of Samsung Electronics received about 900 million won in remuneration in 2019. Last year, Samsung Electronics’ outside director composition was the same as in 2019.
Accordingly, it is estimated that the remuneration of the five major executives of Samsung Electronics, who were named as registered directors, including Vice Chairman Kim Ki-nam, received about 32.8 billion won last year. It is an average of 6.56 billion won per person by simple calculation.
Currently, Samsung Electronics’ internal directors are Ki-Nam Kim, Vice Chairman of Device Solutions (DS) Division, Hyun-Seok Kim, President of Consumer Electronics (CE) Division, Dong-jin Ko, President of IT & Mobile (IM) Division, Jonghee Han, President of Video Display (VD) Division, and Yunho Choi, Chief Financial Officer (CFO). Such as the president.
In 2019, Vice Chairman Kim Ki-nam’s remuneration was 3.45 billion won, the highest among registered directors at the time. Vice-Chairman Kim’s remuneration consisted of 1.37 billion won in salary, 1.96 billion won in bonuses, and 120 million won in other earned income including welfare benefits.
In addition, CEO Dong-jin Ko received 2.83 billion won, Hyun-seok Kim received 2.58 billion won, and Lee Sang-hoon, former chairman of the Samsung Electronics Board of Directors, received 3.14 billion won in 2019.
The registered director, a member of the board of directors, makes major business decisions and bears legal responsibilities accordingly. From 2013, it became mandatory to disclose the remuneration of registered directors.
Samsung Electronics posted a surplus of 359 trillion won last year and sales of 23.67 trillion won. Operating profit increased by 29.62% and sales by 2.78% compared to the previous year.
It is the fourth time since 2013, 2017 and 2018 that the annual operating profit exceeded 35 trillion won.
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