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(Photo = SM entertainment) |
[Alpha Biz= Reporter Kim Minyoung] On September 9, SM Entertainment announced that it will grant 50 shares of its own stock to each employee. This initiative is part of the company's "SM 3.0" strategy, which focuses on transitioning to a multi-production and label system to drive business growth. The stock grants, totaling approximately 28,000 shares worth about 2 billion won, are aimed at encouraging employees and aligning their interests with the company’s success. The grants will be given to most employees, excluding executives.
This is the first time SM Entertainment has offered stock grants exclusively to non-executive employees. Unlike stock options, stock grants are given for free, allowing employees to benefit directly from any increase in the company's stock price and encouraging long-term commitment.
Additionally, SM Entertainment plans to repurchase and cancel 1% of its own shares as part of a shareholder value enhancement effort. The buyback involves 235,895 shares, valued at approximately 20.7 billion won. This follows a previous buyback of 241,379 shares, worth about 14.9 billion won, which took place in February. The remaining shares, approximately 460,000, will be reviewed for future investment in growth or further buybacks.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
