SEOUL: South Korean chipmaker SK Hynix has agreed to pay 60% of employee profit-sharing bonuses in company shares, with the remaining 40% to be paid in cash under a preliminary wage agreement, according to a person familiar with the matter.
The agreement still requires approval from union members. SK Hynix declined to comment on the reported arrangement.
Under the proposed scheme, employees would receive shares equivalent to 40% of their total bonus in 2027, while another 20% would be paid in company stock on a deferred basis in 2028 and 2029.
The remaining 40% of the profit-sharing bonus would be paid in cash in 2027, according to the source.
How will SK Hynix’s employee stock payments work?
The proposed structure would link a larger portion of employee compensation directly to SK Hynix shares while spreading part of the stock component over several years.
Employees would receive the first stock allocation in 2027, followed by deferred stock payments in 2028 and 2029. The source said employees would face no restrictions on selling the shares, allowing them to dispose of the stock once received.
The preliminary agreement comes as SK Hynix remains a major player in the global semiconductor industry, particularly in memory chips used in artificial intelligence and advanced computing.
What happens next for the bonus agreement?
The proposed wage agreement must now be put before SK Hynix union members for approval. Until that process is completed, the reported compensation structure remains preliminary.
If approved, the arrangement would make company stock a substantially larger component of employee profit-sharing payments, with 60% of the bonus delivered through shares and 40% in cash.
SK Hynix has not publicly confirmed the terms of the preliminary agreement.