Samsung Mobile Division Managers Said to Return Part of Their Bonuses

Samsung Mobile Division Managers Said to Return Part of Their Bonuses
Advertisement
Nearly 200 managers at Samsung Electronics Co Ltd's mobile division have voluntarily returned a quarter of their first-half bonuses, a source with direct knowledge of the matter said, with the firm poised to post its worst quarterly profit in two years.

Samsung Electronics earlier this month announced operating profit guidance for April-June that was far below most analysts' forecasts. The world's biggest smartphone maker is facing slowing market growth and intensifying competition.

The decision to return some of the bonus was partly a gesture to demonstrate that managers are taking responsibility for the earnings decline, and partly a way to show that management will work harder, the source told Reuters on Friday, declining to be identified due to the sensitivity of the matter.

Such gestures are not uncommon in South Korea's corporate world, where senior employees of listed companies have been known to take similar steps when performance dips. The source did not give further details, though local media reports estimated that the value of the returned bonuses would likely exceed 3 billion won ($2.92 million).

A Samsung Electronics spokeswoman declined to comment.

Samsung's cash-cow smartphone business has been losing market share as Chinese rivals such as Xiaomi and Lenovo Group Ltd offer increasingly feature-rich phones at lower prices.

Meanwhile, a survey of 35 major global markets by researcher Counterpoint showed the flagship Galaxy S5 (Review | Pictures) smartphone was outsold by Apple Inc's iPhone 5s in the month of May, suggesting that the device was not selling as well as hoped.

Samsung pointed to inventory buildup for its mid-to-low tier products as well as the strength of the South Korean won in its earnings guidance last week.

Samsung will disclose its full earnings for April-June on July 31.

© Thomson Reuters 2014

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

HP CEO Meg Whitman Assumes Chairman's Role
Lawsuit Against Google's Android Policies Could Play Into Rivals' Hands
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »