LG Electronics will provide performance bonuses to employees in its vehicle electronics and electric equipment division, reaching up to 510% of their base salary, following last year’s record sales.
According to the industry on the 24th, LG Electronics held a briefing for its employees in the afternoon to announce the '2024 management performance bonus payout rate.' The company will pay performance bonuses based on the results that reflect the overall performance achievement set at the beginning of the year, as well as the sales and operating profit targets of each division, taking into account factors such as competitive positioning and brand value.
The H&A division, responsible for home appliances, will receive 170% to 470% of their base salary as management performance bonuses, having exceeded 30 trillion won in sales for two consecutive years. The highest rate of 470% is allocated to the living solutions division, which handles washing machines and dryers.
The air solutions division and parts solutions division have been assigned a rate of 370%, while the kitchen solutions division and home beauty division will receive 280% and 170%, respectively. The base salary is one-twentieth of the annual salary, so if an employee with an annual salary of 80 million won (base salary of 4 million won) receives 470%, they will get 18.8 million won.
The VS division has the highest payout rate in the company at 510%, which is an increase of 55 percentage points from last year’s rate of 455%. Despite facing a temporary demand stagnation in electric vehicles, it achieved 10.62 trillion won in revenue last year, surpassing 10 trillion won in sales for two consecutive years.
The HE division, responsible for TV production, has a payout rate of 80% to 140% of base salary, while the BS division, handling business-to-business transactions, has a common rate of 50%. Performance bonuses are expected to be paid on the 5th of next month.
Earlier, LG Electronics announced that its consolidated revenue for last year was 87.7282 trillion won, a 6.6% increase from the previous year, marking the highest record in two years since 2022 (82.5215 trillion won). However, the annual operating profit fell 6.4% to 34.197 trillion won, affected by external factors such as the slow recovery of global appliance demand and rising logistics costs in the second half.