Introduce a performance-linked stock compensation plan Plan to finalize it after placing it on the agenda for next March’s regular shareholders’ meeting Add an option to receive OPI in shares instead of cash Make every effort to keep key talent from leaving

A view of Samsung Electro-Mechanics’ Sejong Plant. Samsung Electro-Mechanics 사진 확대 A view of Samsung Electro-Mechanics’ Sejong Plant. Samsung Electro-Mechanics

It has been confirmed that Samsung Electro-Mechanics is pursuing the introduction of a performance-linked stock compensation plan (PSU, Performance Share Unit) and an expansion of the option to receive its Overperformance Incentive (OPI) in shares. The company plans to introduce PSU, a compensation system that awards shares based on medium- to long-term performance, and revise its rules to allow employees to receive OPI in shares as well as cash.

According to people in the electronics industry on the 22nd, Samsung Electro-Mechanics plans to place its proposed expansion of stock-based compensation on the agenda for its regular shareholders’ meeting in March next year.

PSU, a performance-linked stock compensation plan, varies the number of treasury shares promised according to the rate of increase in the stock price after a set period. Samsung Electronics and Samsung Display Co., Ltd. introduced PSU in the second half of 2025, ahead of Samsung Electro-Mechanics. In line with the push to expand the program across affiliates, Samsung Electro-Mechanics has also decided to begin introducing PSU.

When Samsung Electronics introduced the program in October 2025, it said it would apply a payout multiplier based on the stock-price increase over three years to the number of shares promised, and then award the resulting number of shares. For example, if the stock price has risen by more than 100% at the 2028 evaluation, an employee promised 300 shares would receive twice that amount, or 600 shares in total. Samsung Electro-Mechanics also plans to finalize the details after the proposal passes at the shareholders’ meeting and it completes coordination, including holding briefings for employees. The industry expects the company to draw up a plan similar to Samsung Electronics’ program.

Along with introducing PSU, Samsung Electro-Mechanics plans to diversify how OPI is paid. It has so far been paid in cash, and an item allowing employees to receive it in shares as well has also been placed on the shareholders’ meeting agenda.

The introduction of the program is seen as being primarily aimed at diversifying how short-term performance bonuses are paid. It also aligns with efforts to link employee compensation to the company’s long-term growth and stock price. Samsung Electro-Mechanics is moving quickly to expand its AI business, announcing plans with NVIDIA Corporation and Tesla for long-term supply of package substrates for AI semiconductors and joint investment in production facilities. As growth expectations rise, competition to retain and attract key talent through compensation is also gathering pace.

Term: PSU

A performance-linked stock compensation plan (PSU, Performance Share Unit) is a long-term performance-based compensation system that awards varying amounts of the company’s own shares to executives and employees in line with the company’s future medium- to long-term performance, such as the extent of a stock-price increase after three years.

Term: OPI

The Overperformance Incentive (OPI) is a short-term bonus program paid when short-term business performance over the past year exceeds the annual target.

This article has been translated by GripLabs Mingo AI.