Stock Compensation Surges 65.7% Among Large Business Groups
Large business groups are rapidly shifting executive performance compensation from cash to stock. Samsung Electronics, in particular, sharply increased stock grant agreements for executives last year as part of efforts to strengthen management accountability, driving the number of new stock compensa
Large business groups are increasingly offering stock-based compensation to executives, rather than cash, in an effort to enhance management accountability. According to the Fair Trade Commission's report, the number of new stock compensation agreements among affiliates of 15 major business groups surged more than 60% year-over-year.
Samsung Electronics alone accounted for 54.2% of the newly signed agreements, with the company signing 317 stock grant agreements in 2025, up from none in 2024. The Fair Trade Commission's Kim Min-a explained that Samsung Electronics implemented the stock grant agreements to strengthen management accountability. Other companies also adopted stock compensation criteria tailored to their management goals.
However, SK Electronics limited the number of new agreements it signed, citing an internal decision. The Fair Trade Commission is closely monitoring the potential concentration of executive compensation among owner families or related parties, while noting the positive aspect of stock grant agreements serving as performance-based compensation for executives.
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