Samsung decline results in pay cuts for executives

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Last updated: November 14th, 2014 at 12:26 UTC+01:00

In case you haven’t heard up till now, Samsung Electronics isn’t having a great year, and that’s primarily because of declining sales that are having a direct impact on the revenue. Sliding revenue means less money in the boss’s pocket, that’s evident from Samsung mobile chief J.K. Shin’s pay for the third quarter of this year, as described by Samsung in a regulatory filing today.

As per this filing J.K. Shin only took home 689 million Korean won during the third quarter this year, that’s $630,000. Compare that with the previous quarter and you notice a significant drop as his pay then was 1.7 billion won or $1.5 million.

It goes without saying that this is the result of the 60 percent drop in net profit that Samsung reported in its third quarter, which ended on September 30th. The company’s stock price has gone down some 14 percent this year. During the first quarter of this year the operating profit margin for Samsung’s mobile division was 20 percent, falling down to just 7 percent in the previous quarter.

Therefore Shin’s pay and performance bonus have both seen a significant cut. The company is now looking towards curved displays in order to get its mobile business out of the slump as the new year approaches. It will certainly be interesting to see if and when Samsung’s fortunes improve next year.

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