Samsung Electronics minority shareholders through platform Act plan to send a letter to the National Pension Service on May 20 protesting a labor-management bonus agreement, according to industry sources on May 18. The shareholders oppose the 2026 wage agreement that allocates up to 10.5% of the semiconductor division's operating profit as performance bonuses without shareholder meeting approval. The National Pension Service holds a 7.9% stake in Samsung Electronics, making it a major institutional investor responsible for managing public retirement funds.
Act Platform Delivers Shareholder Concerns to National Pension Service
The shareholder platform Act will deliver a letter to the National Pension Service Fund Management Headquarters on May 20. The letter contains concerns from Samsung Electronics minority shareholders about the 2026 wage agreement and performance bonus arrangement being finalized and implemented without shareholder meeting approval.
The shareholders argue that as a major shareholder and fiduciary managing public retirement funds, the National Pension Service should examine how the bonus payment structure affects shareholder value.
Bonus Agreement Structure and Shareholder Opposition Details
Act claims that based on this year's performance, approximately 40 trillion won could be paid annually in bonuses, and hundreds of trillions of won could flow out over 10 years without shareholder meeting approval.
Samsung Electronics established a special management performance bonus for the semiconductor (DS) division using 10.5% of operating profit as the funding source, to be paid in treasury shares over the next 10 years.
Act representative Lee Sang-mok stated: "The distribution of profits on such a massive scale, steadily paying tens of trillions of won annually for 10 years, should naturally undergo strict approval by the real owners who bear all the risk - the shareholders. We are asking about the common sense of capital markets that employee performance compensation should also be decided on the transparent and legal judgment stage of the shareholder meeting."
Government Considers Board Resolution Requirement
The government recently moved to mandate board resolutions for performance bonus payments. Act urged supplementation to ensure final approval through shareholder meetings.
Signature Campaign Reaches 424 Shareholders
As of now, 424 shareholders have signed the letter. These shareholders hold 207,724 Samsung Electronics shares. Additional electronic signatures will be collected until May 19, the last day of the holiday period.
FAQ
What did Samsung Electronics minority shareholders do on May 18?
Samsung Electronics minority shareholders through platform Act announced on May 18 that they will send a letter to the National Pension Service on May 20 protesting a bonus agreement that allocates up to 10.5% of semiconductor division operating profit without shareholder meeting approval.
How many shareholders signed the protest letter to National Pension Service?
As of the announcement, 424 shareholders signed the letter to the National Pension Service, collectively holding 207,724 Samsung Electronics shares. Additional signatures were being collected until May 19.
