Samsung Semiconductor Reduces Performance Awards, Holding the Relevant Department Responsible for the CO2 Leakage Accident

It was announced on the 14th that the device solution division (DS), which oversees the semiconductor business of Samsung Electronics, was awarded the Target Achievement Incentive (TAI) at the end of last year based on the graded payment system.

At that time, in the industry, all employees at the Samsung Electronics' DS division were expected to receive a 100% TAI.

They have been receiving 100% TAI for several years, and they achieved the record high performance last year. However, the company reduced the TAI of some departments to 50%, such as the department overseeing the Gi-heung semiconductor site, holding them responsible for the CO2 leakage accident that caused three casualties at the Giheung Semiconductor site last September.

An industry observer said, "Most of the 'special bonuses' for the expansion of the year-end earnings were received in the same way, but the departments related to the environment and safety received only 50% the TAI. As the TAI of the worksite operation departments was paid differently, it was reported that the TAI of the staff department such as management support was decreased to 75%.”

TAI is an incentive payment that differs by an organization based on productivity and value creation. Each year, it is divided into the first half and the second half and is paid once per period. Based on the performance of each organization, it will be paid from 0% to 100% on a monthly basis according to A to D grades.

Some of the employees who received the bonus statement reportedly complained about the change. However, it is known that most accepted it as the CO2 leakage accidents had negative effects on the company in terms of 'value creation'.