'Shareholder Participation Program' applicants 3,331 individuals

SK Hynix has issued its own shares to employees as part of an equity-based reward system tied to corporate value. The company announced on the 28th that it disposed of 43,145 of its own shares.

The disposal price per share is 269,500 KRW, totaling approximately 11.627 billion KRW. This share disposal was conducted for the purpose of 'granting stock bonuses to employees linked to corporate value-based compensation.'

The beneficiaries of this compensation are the 3,331 SK Hynix employees who applied to the 'Shareholder Participation Program' conducted earlier this year, and the company explained that the shares were distributed primarily to them.

PS Some compensation in the form of shares… Enhancing both performance and responsibility simultaneously

The 'Shareholder Participation Program' is a system introduced by SK Hynix to combine corporate value enhancement incentives with employee performance compensation. Specifically, it allows employees to choose a certain percentage of their Performance Share (PS) rewards to be received in the form of company shares.

Employees participating in this program can convert between a minimum of 10% and a maximum of 50% of their PS into shares. Additionally, a reward structure that promotes voluntary long-term holding is also established. Notably, if employees hold the shares for more than one year, they are granted an additional cash compensation equivalent to 15% of the purchase price, thereby expecting a real long-term incentive effect.

Internal cohesion strategy aimed at enhancing corporate value

This issuance of shares is interpreted as a strategy that goes beyond mere compensation, providing employees with both responsibility and motivation for enhancing corporate value through the structure of becoming shareholders. An SK Hynix official explained, "The Shareholder Participation Program was designed to encourage employees to participate more actively in corporate performance."

SK Hynix plans to continue enhancing employee motivation and organizational cohesion through a sustainable compensation system while pursuing a balance between corporate value enhancement and shareholder returns.

Image source: A view of SK Hynix headquarters in Icheon, Gyeonggi Province / News1, News1