It’s not a secret that Samsung’s mobile division is struggling and the company doesn’t expect things to significantly turnaround this year however that won’t stop Samsung Electronics from retaining the 50% ceiling for employee bonuses at its mobile division. A “high-ranking Samsung executive” has confirmed to The Korea Times that employees at the company’s mobile division will receive 50% of their annual salaries “as compensation for their sincere contribution to keeping the division running despite numerous challenges.” Employees of Samsung’s mobile division will receive this additional bonus amount this month.
Samsung normally pays employees at all of its divisions up to 50% of their annual salaries if their division turns a profit that exceeds internal targets set at the start of the year but that really can’t be said for its mobile division. The company executive agrees that last year the handset division’s performance wasn’t strong but argues that it fared well amid rising challenges like the meteoric rise of Chinese vendors and increased pressure in the high-end segment. “The mobile division is worthy of being rewarded,” says the unnamed executive, adding that the mobile division remains Samsung’s biggest cash cow along with the memory chip business. Giving a hefty bonus is just Samsung’s way of motivating workers through “proper compensation.”
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