Samsung is restructuring its businesses and as a part of that effort, the salaries of its 3 co-ceo’s have taken a hit. Well technically the salaries have stayed the same but the amount of bonuses they earn have been drastically reduced as a part of the plan to recapture the profit growth. The ceo’s bonuses were revealed as a part of the regulatory filing and the following information had been unearthed
- Ceo kwon oh-hyun received 3.82 billion won (about $3.25 million usd), compared to 6.25 billion won in 2014(vice chairman).
- Ceo yoo boo-keun received 2.34 billion won, compared to 3.61 won in 2014(consumer electronics business division).
- Ceo shin jong-kyun received 2.28 billion won, compared to 12.03 billion won in 2014(mobile business chief).
Most notably, the mobile business chief, shin jong suffered the most with his fortunes plummeting almost 81%. The erosion of the ceo’s salaries have been attributed to the slowing of growth in the smartphone division. This was expected given the smartphone sales performance previous year and the tech giant vowed to fight back with top class phones. Staying true to its word, Samsung produced some of the best phones we have ever seen in form of the note 5 and the s6 edge. But that wasn’t enough to stop the slide.
But the overall performance of Samsung saw a rare growth this quarter. the growth returned to the profits after 7 straight declining quarters. But this was powered by the advancements in the semiconductor and memory division while the smartphone sales slide continue.
It doesn’t affect much if the ceo’s earned a little less money but cutting the job and reducing force will really effect the employees. What will be Samsung’s next move to stay on top?
