Samsung SDS has dropped a plan to replace its cash performance incentive with stock compensation after the proposal failed to win majority approval from employees. Final support reached 40% in a vote that ran through July 7.

The plan would have scrapped the existing cash Performance Incentive (PI) and replaced it with annual share grants worth about 20% of salary, partly linked to market performance.

Opponents also said removing cash PI could reduce severance payouts after South Korea’s Supreme Court ruled that Samsung Electronics’ PI should be included in retirement-allowance calculations.

During the vote, Samsung SDS employees set up the company’s first union since its founding on July 6.

Separately, Samsung Electro-Mechanics employees approved changes to their annual bonus formula from, highlighting broader debate over pay structures across Samsung affiliates.

🔗 Source: Chosun Daily

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