Samsung Electronics considers share buyback for stock bonuses, details undecided

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTHeejin Kim and Hyunjoo JinWed, June 24, 2026 at 3:35 AM GMT+2 1 min readBy Heejin Kim and Hyunjoo JinSEOUL, June 24 (Reuters) - Samsung Electronics said on Wednesday it was considering buying ‌back shares to fund stock-based employee compensation tied to ‌its 2026 performance, but that no details including timing or size of the ​buyback had been decided.The clarification came in a regulatory filing after local media reported that Samsung would buy back 90 trillion won ($58.61 billion) worth of shares from next month.Samsung's management and union last ‌month reached a pay ⁠deal under which Samsung is expected to set aside about 10.5% of its annual operating profit ⁠for special bonuses for the chip division in the form of stocks, sparking concerns over inequality at the company.Employees at Samsung will ​be able ​to immediately sell a third ​of the treasury shares they ‌receive as bonuses, but they will have to wait a year to sell another third and a further year for the remainder.Samsung also may need to repurchase additional stocks to award employees under a separate compensation programme, called the "Performance Stock Unit," which ‌was introduced last October to align ​employee rewards with long-term stock performance.Samsung ​Electronics and chip rival ​SK Hynix are expected to post record profits ‌this year and next year, as ​the AI boom ​has fueled a shortage of memory chips, driving up prices.Samsung shares closed up 9.8%, outperforming SK Hynix's 1% gain ​and reclaiming the ‌top spot by common-share market capitalisation in South Korea.($1 = 1,535.6000 ​won)(Reporting by Heejin Kim, Hyunjoo Jin and Joyce LeeEditing ​by Ed Davies, Elaine Hardcastle)Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info