Business
Samsung Eyes 90 Trillion Won Share Buyback After Wage Deal
Samsung Electronics is reportedly preparing a 90 trillion won share buyback programme after a wage agreement that includes stock bonuses for chip division employees, according to Yonhap News Agency.
Key Highlights
- Samsung Electronics announces 90 trillion Won ($58.61 billion) share buyback programme
- The plan details will be announced soon by the company.
- The decision comes after the union signed a wage deal last month
- The bonus programme will total 154 trillion won, including taxes.
- Employees will be granted shares vesting over a period of 2 years
Yonhap News Agency reported Samsung Electronics announced a 90 trillion Won ($58.61 billion) share buyback programme, which would be the second massive stock repurchase. The memory chip maker will give more details shortly. It also agreed to give a bonus in stock to employees following recent wage discussions.
The announced buyback program follows an earlier wage agreement last month between Samsung and its union. It will likely set aside around 10.5% of operating profit for a special stock bonus in the chip division under the deal. The decision has triggered alarm over company inequality after the wage negotiations reached their conclusion.
Samsung is expected to spend 154 trillion Won for the bonus programme, including taxes, with taxes accounting for some 40% of the figure, Yonhap reported.
Employees will be able to sell one-third of the stock bonuses immediately. One-third may be sold after 1 year, while the rest will have to wait for another year before they are free to sell.
Source: Reuters
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