SK Hynix Reaches Tentative Agreement to Pay Majority of Bonuses in Stock
2 sources across 2 countries · South Africa · United Kingdom
Who reported this
- Business Day
- Reuters
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SK Hynix has reached a tentative wage deal with its South Korean workers to provide 60% of this year's bonuses in company stock instead of the all cash payouts provided last year. Under the terms of the agreement, employees will receive 40% of their bonuses in cash and 40% in stock that can be cashed out immediately. The remaining 20% will be issued as deferred compensation in stock, with half paid after one year and the rest after two years. The deal also includes a 6.3% increase in base wages and a clause allowing the company to defer up to 3% of wages if the company records losses. The agreement is currently subject to a vote by union members. Management previously proposed the shift to stock to avoid draining cash reserves and to prevent public backlash over lavish payouts following an AI boom that increased earnings. Some workers expressed concern regarding the volatility of the company's shares. Separately, SK Hynix announced plans to buy back and cancel 40 trillion won of treasury shares and allocate over 50% of free cash flow from 2025 to 2027 toward shareholder returns.
How each side framed it
- Centre
- The reporting focused on the factual shift from cash to stock bonuses.
- Centre-right
- The reporting emphasized the economic rationale for the stock payout, framing it as a win win solution to avoid financial strain and public backlash.
Sources
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