AH 2015 Samsung LOGO-125

Salaries Of Samsung CEOs Drop; Poor Sales To Blame?

November 17, 2015 - Written By Kristijan Lucic

Samsung is still the number one smartphone OEM in the world. As far as market share is concerned, this Korea-based tech giant is currently above and beyond any other company. That being said, Samsung didn’t do all that well last year, and it seemed like the company managed to get back on the right path this year considering their sales started climbing according to some reports. Well, that might not be the case after all, at least not according to the latest report, read on.

According to Korea Herald, a source which is basing their report on Samsung’s regulatory filing, says that the salaries seem to be down for Samsung’s CEOs. The company’s Vice Chairman, Kwon Oh-hyun, was the highest paid this year with a salary of 3,82 billion won ($3.25 million). Now, this seems a lot, doesn’t it? Well, if you compare it to 6.25 billion won he received last year, not so much. Yoo Boo-keun, Samsung’s Head of Consumer Electronics Business division, received a 2.34 billion won salary, which is also significantly less than 3.61 billion won he was paid last year. And last, but not least, Shin Jong-kyun, Samsung’s Mobile Business chief, received 2.28 billion won, which is far less compared to 12.03 billion won he received back in 2014.

Why are these salaries so ‘low’ this time around? Well, because of incentives, and they’re usually related to company’s performance. So, all in all, it seems like Samsung’s sales had a significant impact on the salaries their CEOs receive. Now, according to most reports we’ve received which are related to Samsung’s sales this year, the company is actually doing pretty well, so this is somewhat puzzling. Samsung didn’t release an official statement regarding this, and they probably won’t do it at all, but it sure is interesting. Some of the latest reports also suggest that Samsung might be ready to lay off some executives in the near future in order to cut costs, which is also very interesting. The end of 2015 is near, and it will surely going to be interesting to see Samsung Mobile’s results for the year, get a better insight in how many smartphones they sold, and how much money did they make this time around.