Tightening All Belts
Samsung Electronics has decided to freeze the wages of its employees for the first time since 2009 due to the sluggish performance it recorded last year.
Earlier, the Samsung Group announced that it would apply a zero wage increase to its 2,000 or so executive members. Still, it did not touch their overall performance incentive that depends on annual business performance by subsidiary.
Samsung Electronics increased its base pay by 1.9 percent last year. The increment was relatively small, in spite of its record performance in the previous year, because of the expansion of the scope of ordinary wages.
In the three preceding years, the percentages were 4.0 percent, 4.0 percent and 5.5 percent, respectively.