Top Samsung execs take their bonus in stock as confidence improves

The confidence in Samsung Electronics' stock has improved considerably over the past few months. Investors have realized that the company is well positioned to take full advantage of the ongoing memory supercycle, and its latest earnings have reflected that.

No wonder, then, that the company's stock continues to hit new all-time highs. Investors will also like the fact that the top executives at Samsung Electronics are taking their yearly bonuses in stock.

Samsung Electronics shifted top executives to a stock-based compensation system for their Outperformance Incentive last year. To adopt responsible management practices, executives were required to receive their bonus in company stock.

How much of the bonus is paid in stock depends on the rank. Senior vice presidents must take at least 50% of the bonus in stock, compared to 70% or more for executive vice presidents, 80% or more for presidents, and 100% for registered executives.

The head of Samsung's mobile division, TM Roh, received 7,299 shares worth 1.17 billion won or roughly $800,000, while Jeon Young-hyun, head of Samsung's chip unit, picked up his $1.2 million bonus in stock.

Various other executives ranging from the head of Samsung's new corporate management office to senior advisors also received their bonus in stock. This underscores that the top leadership is bullish on the company's future prospects, and they're tying in their personal wealth to the performance of the overall business.