Samsung SDS Scraps Bonus Reform as Employee Approval Falls Short of Majority

The proposed revision to the performance bonus system at Samsung SDS failed to pass, as it did not receive approval from more than half of its employees.

On July 8, Samsung SDS announced, "The proposed revision to the personnel system will not be implemented, as it did not meet the requirement of majority approval from all employees necessary for its introduction."

Samsung SDS logo. Samsung SDS

A total of 55.6% of all employees participated in the vote. Among those who voted, 71.9% were in favor of the revision. However, this amounted to a final approval rate of 40% of all employees, falling short of the required majority.

Samsung SDS conducted a vote of all employees until midnight the previous day on whether to abolish the current cash incentive system (PI) and instead introduce an annual performance bonus paid in company shares equivalent to 20% of annual salary. The vote was originally scheduled to close on June 29, but the deadline was extended once after employees voiced concerns that the initial voting period was too short.

Employees opposing the revision have raised issues with the new performance bonus calculation, which would be linked not only to operating profit and share price but also to external indicators such as industry indices. They also objected to the removal of the current target incentive from the calculation of severance pay. Some employees further claimed that management was pressuring staff to vote in favor of the proposal.

This content was produced with the assistance of AI translation services.