Naver recorded the highest performance in its history and paid up to 50% of the maximum annual salary as a year-end incentive.
On the 3rd, according to the IT industry, Naver paid a year-end special incentive to all employees on the 24th of last month. The payment criteria vary according to performance evaluations, and the lowest-rated employees may not receive any. Naver's performance ratings are divided into △Bb △B △A △Aa △Ss △Sss. Employees with a B rating received 9.6% of their annual salary, A-rated employees received 16%, and those with the highest Sss rating received 40% to 50% of their annual salary.
Considering that Naver's average salary per person was 119 million won at the end of 2023, employees who received a median rating (A) would have received at least 19.04 million won as an incentive.
Additionally, on January 2 of this year, Naver distributed company shares worth 5 million won to all employees through the 'stock grant' system. The Naver stock price increased by 9% since the payment, so if they still hold the shares, the current value has risen to 5.46 million won. Under the stock grant system introduced in 2021, Naver distributes 10 million won worth of company shares each year, split into 5 million won in the first and second halves.
Naver is expected to surpass an annual revenue of 10 trillion won in 2024, achieving the largest performance in its history. Operating profit is projected to be 1.979 trillion won, with an operating profit margin anticipated to rise by about 3 percentage points to 18.5% compared to the previous year. This achievement is analyzed as the result of successfully promoting a 'money-making AI business' despite the expensive AI competition.
Thanks to this performance, the possibility of CEO Choi Soo-yeon, whose term ends in March this year, being reappointed has increased. However, despite recording the highest performance, the size of CEO Choi's performance bonus is expected to be modest. Choi signed a restricted stock unit (RSU) contract worth 1.2 billion won (4,166 shares) in 2022, which will be paid in partitions of 30%, 30%, and 40% over three years based on performance.
Naver determines the scale of RSU payments based on the percentage conditions of stock price increases within the KOSPI 200. It appears unlikely that performance bonuses will increase significantly as Naver's stock return in 2024 (-11.21%) is similar to the KOSPI 200's return (-11.22%).