Samsung managers return part of bonuses amidst company’s weak financial results
Samsung recently announced that it is expecting a weak financial quarter with reduced profits, and now, a report from Reuters has revealed that almost 200 Samsung managers have opted to voluntarily return a quarter of their first-half bonuses. The managers are reportedly doing this as a gesture to show that they are taking responsibility for the earnings decline, and partly to indicate that the management will work harder. The returned bonuses are likely to exceed 3 billion won ($2.92 million)
It might seem odd, but top employees returning their bonuses isn’t a phenomenon uncommon in South Korea. Hopefully, Samsung’s management can take the weak quarter as a sign that major changes are required in the company’s strategy, especially when it comes to the huge competition it is facing from Chinese manufacturers, who are spelling troubles for major OEMs by offering better value in smartphones for lower prices, especially in the low-end and mid-range segments.