|
Samsung Electronics Co. announced on Wednesday its decision to purchase treasury shares worth approximately 2.5 trillion won (USD 1.72 billion). The technology giant intends to utilize these shares for employee stock-based compensation programs. This move follows a board meeting where the company finalized plans to buy back a total of 18 million shares between January 8 and April 7.
"Samsung Electronics Co. said on Wednesday that it will purchase treasury shares worth about 2.5 trillion won ($1.72 billion) to spend for employee stock-based compensation," according to a report by Pulse, the English service of Maeil Business News Korea. The buyback value is calculated based on the closing price of 138,900 won (USD 95,618) per share recorded on Tuesday. The company noted that the actual number of shares acquired during this period remains subject to change depending on future stock price movements. Samsung Electronics stated that the buyback supports various stock-based compensation initiatives, including the performance-linked stock unit (PSU) program, which the company introduced in October last year. "Samsung Electronics noted that the buyback is intended to be used for stock-based compensation, including the performance-linked stock unit (PSU) program introduced in October last year, as well as performance incentives such as excess profit incentive (OPI) system," the report said. The PSU program functions as a new scheme separate from the OPI system. A primary feature of this program ensures that employee compensation increases in direct proportion to the rise in the company's stock price. "Under Samsung Electronics' PSU program, employees will receive treasury shares based on the extent of the company's stock price appreciation over the next three years," the report noted. By linking compensation to stock performance, the company aligns employee incentives with shareholder value. (ANI)
|
