SK hynix will provide a stock buyback option with the performance bonuses to be distributed to its members at the end of this month. This aims to enhance the motivation of employees.
According to the industry on the 14th, SK hynix announced on the internal notice board on the 9th that it would implement a "shareholder participation program."
The shareholder participation program allows members to choose to hold up to 50% of the excess profit distribution (PS) in company stock. If they hold the stock for one year, they will receive an additional 15% of the purchase amount in cash (premium).
Members participating in the shareholder participation program can select shares in increments of 10%, from a minimum of 10% to a maximum of 50% of the PS. The application period ends on the 16th.
PS is an incentive that can pay up to 50% of the annual salary (1000% of the base salary) once a year, depending on annual performance. SK hynix has been paying PS linked to individual performance using 10% of the previous year's operating profit as a fund since 2021.
Kwak No-jeong, CEO of SK hynix, noted during a staff communication event on the 11th of last month that "we will strive to pay the PS by next January, before the Lunar New Year."
This PS payment scale is expected to reach an all-time high due to strong sales of high-bandwidth memory (HBM). The securities industry estimates that SK hynix generated more than 23 trillion won in operating profit last year. This surpasses the operating profit level of 20.8438 trillion won in 2018, which was during the semiconductor boom.