Samsung Electronics has announced a new performance-linked stock compensation program for its employees, marking a significant shift in its approach to workforce incentives.
The initiative, unveiled on October 14, 2025, comes as the company reports its strongest quarterly earnings in over three years and aims to align employee rewards with long-term shareholder value.
Performance Stock Units Program Introduced
Under the new scheme, Samsung will offer Performance Stock Units (PSUs) to employees across various levels.
The program ties compensation directly to the company’s stock performance over a three-year period, from October 2025 to October 2028.
Employees will receive between 200 and 300 shares, depending on their career level, with the final payout determined by the growth in Samsung’s share price during the evaluation window.
This marks the first time Samsung has introduced a company-wide stock-based incentive program.
The move is intended to strengthen employee retention, boost morale, and reinforce the company’s commitment to performance-oriented management3.
Samsung Strong Earnings Support the Initiative
Samsung’s announcement coincided with its Q3 FY25 earnings guidance, which projected an operating profit of 12.1 trillion won (approximately 8.5 billion dollars).
This represents a 31.8 percent increase compared to the same quarter last year and is the highest quarterly profit since Q2 2022.
The company’s strong performance in its core business segments, including memory chips and AI technologies, has contributed to renewed investor confidence and a surge in stock value.
Samsung’s leadership believes that linking employee compensation to stock performance will further incentivize innovation and accountability.
Addressing Employee Sentiment and Market Competition
The PSU program also responds to growing employee concerns over bonus structures and long-term incentives.
Recent reports indicated dissatisfaction among staff regarding the lack of performance-linked rewards.
By introducing stock-based compensation, Samsung aims to address these concerns while staying competitive in the global tech labor market.
Chairman Lee Jae-yong has positioned the initiative as part of a broader shift toward performance-driven management.
The company has stated that the program will be reviewed periodically and may be expanded to include additional roles or adjusted based on market conditions.
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