Samsung has reached an agreement with its labor union to distribute approximately $26.6 billion in bonuses to its employees. These bonuses, representing 10.5% of the annual profit from its chip division, will be issued in the form of stock. To facilitate this, Samsung is initiating a substantial stock buyback program valued at $58.61 billion. Employees are set to receive an average bonus of around $340,000 in treasury shares. They will have the option to sell a third of these shares immediately, another third after one year, and the remaining portion the following year. This buyback initiative exceeds the bonus payout as it also supports Samsung’s Performance Stock Unit program, designed to align employee incentives with the company’s long-term stock performance.
Why is Samsung buying back $59 billion of its own stock?
