SK hynix reorganizes PS system … Expectations to end controversy over performance pay

K Hynix is ​​changing the recently controversial standard for calculating excess profit distribution (PS) from EVA (economic value added) to a method that is linked to operating profit. In addition, we plan to issue a shareholder so that employees can receive benefits equal to 200% of base salary.

On the afternoon of the 4th, SK Hynix announced that it had reached an agreement between the workers and the management by holding a central council between the workers and the management at the Icheon headquarters on the afternoon of the 4th to improve the PS system and pay ownership of employee shares to members. . As a result, the controversy over performance-based compensation is likely to end.

The management proposed three questions to the union and the union reached an agreement by responding.

PS calculation standard indicator will be changed from EVA to link to operating profit to communicate with internal members. Meanwhile, employees are not satisfied with the EVA indicator and the goal is to increase predictability through operating profit where the figures are clearly disclosed.

In addition, based on the approval of the board of directors, the company decided to issue employee shares to give members the right to purchase them. The specific plan was decided later, but it was decided to grant benefits equivalent to approximately 200% of the base salary. It means promoting the future growth of the company by granting members ownership of employee shares.

In addition, the company decided to provide 3 million high well points, which are internal wellness points, to all members.

SK Hynix president Lee Seok-hee said, “We sincerely apologize for the fact that we have not communicated enough so far,” he said.

Kim Hae-ju, president of SK Hynix Icheon Workers Union, said: “It has opened a new path for mutual development between the company and its members.” Cheongju Workers’ Union Chairman Kang Kook-mo said, “I will heal my injuries and work together towards the future.”