LG Electronics has decided to pay 445-665% of management incentives to members of the H & A division in charge of household appliances.

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stockmk2020@alphabiz.co.kr | 2024-01-29 00:56:58

LG전자 사옥. (사진=연합뉴스)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] Large companies have mixed feelings of joy and sorrow depending on their business conditions and performance.

According to industry sources on the 29th, LG Electronics, which has achieved maximum sales for three consecutive years, has decided to pay 445 to 665 percent of its basic salary (one-twentieth of its annual salary) to members of its H & A business headquarters in charge of home appliances.

The highest 665% payment rate has been set to the Living Solution Division, which has contributed to the largest sales by consolidating its global position as the world's No. 1 washing machine.

The H & A division recorded sales of 30.1395 trillion won last year, beating its rival Whirlpool of the United States to become the top global home appliance maker.

455% of the basic salary will be paid to the VS Business Headquarters, which is in charge of electric and electronic equipment for vehicles. Last year, the VS Business Headquarters exceeded 10 trillion won in sales within 10 years of its launch.

HE Business Headquarters 200-300%, which runs TV business, and BS Business Headquarters 135-185%, which is in charge of business-to-business transactions (B2B).

Apart from the productivity incentive (PI), which is an incentive paid semi-annually, SK Hynix will pay its members 15 shares per person and 2 million won in incentives.

SK Hynix paid 50% of its basic salary to its employees on the 26th with PI paid semiannually when the company achieves its target production.

On the other hand, performance-based bonuses received by employees of Samsung Electronics' semiconductor division have shrunk to the lowest level ever due to poor performance due to worsening semiconductor business conditions.

Samsung Electronics' expected payment rate for excess profit performance (OPI) in the device solution (DS) division in charge of the semiconductor business was set at 0%. The company confirms the payment rate soon.

As the company posted the biggest deficit since its foundation last year due to the worst cold weather in semiconductors, chances are high that performance-based bonuses will not come out.


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