Core Points - Samsung Electronics is implementing a new compensation system that includes stock and bonuses linked to its stock price for regular employees, marking a significant reform in its pay structure [1] - The new plan will distribute bonuses based on Samsung's stock price from October 2023 to October 2026, allowing employees to choose to receive up to 50% of their bonuses in stock rather than cash [1] - This initiative is a response to growing internal dissatisfaction and competitive pressure from rivals like SK Hynix, which has set a precedent for profit-sharing in the tech industry [1][2] Group 1 - Samsung's new employee reward program is an expansion of a previous decision to issue stock bonuses to executives, indicating a fundamental shift in the compensation structure for higher management [1] - The company has faced increasing employee dissatisfaction partly due to SK Hynix's record profits and generous compensation packages, which have made Samsung's pay structure appear less competitive [1] - The internal memo highlights that this move is also in response to union demands for a fairer bonus system [1] Group 2 - SK Hynix has set a precedent by agreeing to allocate 10% of its annual operating profit to an employee bonus pool, which has strengthened labor organizations' negotiating power in the tech sector [2] - Following SK Hynix's example, Samsung's subsidiary unions are advocating for a reform that would allocate 15% of annual operating profits directly to an excess profit-sharing bonus pool [2]