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SK Hynix plans more stock-linked bonuses after AI-driven profits surge
Workers will receive 40% of bonuses in cash and 40% in stock, with the remaining 20% deferred, under a deal subject to union approval.
SK Hynix said it has reached a tentative wage agreement with South Korean workers that will shift most of this year’s bonus to company stock rather than an all-cash payout, following a surge in earnings tied to the AI boom, according to Reuters.
Under the proposal, workers will receive an average 779 million won, or about $547,000, for 2026 based on Reuters calculations. Employees would get 40% of bonuses in cash and 40% in stock that can be cashed out immediately, with the remaining 20% paid as deferred compensation, half after one year and the rest after two years.
The plan is subject to a vote by union members, and it is intended to address worker concerns about share-price volatility and management’s push to increase stock-linked compensation. Reuters also noted that the company’s stock hit a record high in June amid AI excitement before slipping on worries about spending and insufficient reward.
SK Hynix said the deal includes a 6.3% increase in base wages and a clause that allows the company to defer up to 3% of wages if it records losses. Separately, the chipmaker said it will buy back and cancel 40 trillion won, or about $28.6 billion, of treasury shares and allocate more than 50% of free cash flow generated between 2025 and 2027 to boost shareholder returns.