Angry Samsung Takes Back Billions in Bonuses from 100 Samsung Mobile Division Executives for Poor Performance
On July 9 we reported that Samsung drastically cut Galaxy S5 orders for Q3 due to terrible sales. On July 10 we reported that Samsung's profits plummeted 24% on slow smartphone sales and on July 15 we reported that the iPhone crushed Samsung's S5 globally while Samsung failed miserably in China. So is it any wonder that Samsung's mobile division executives had to return 25% of their recent bonuses? The Korean Press confirmed that today.
The Korean Press this morning reports that "Executives of Samsung Electronics' mobile division returned about one-fourth of the bonuses they received for the first half of this year after the unit posted lackluster second-quarter earnings on slow smartphone sales, industry sources said Friday.
More than 100 executives in Samsung's IT and mobile division reportedly returned a combined 3 billion won ($2.9 million) worth of their regular incentives, also known as the target achievement incentive.
TAI is distributed every six months based on the performance of each business division. So far, the mobile division had been one of the major beneficiaries of this bonus.
Last week, Samsung, the world's biggest technology firm by revenue, estimated that its second-quarter operating profit would fall to 7.2 trillion won."
On July tenth, Daniel Kim at Macquarie talking about Samsung's poor phone sales stated that "This poor inventory management is not worthy of the Samsung name" and criticized the company for "overconfidence on their products, and misreading the market."
Finally the market is catching up with reality.