Seoul: Samsung Electronics Co. announced plans to distribute treasury shares valued at 175.2 billion won (US$120 million) to its executives under its excess profit incentive (OPI) system. The South Korean technology company revealed in a regulatory filing that 1.15 million treasury shares will be allocated to 1,051 executives as part of this incentive program.

According to Yonhap News Agency, the OPI system allows employees to receive bonuses of up to 50 percent of their annual salary when their specific business division achieves its earnings targets. A portion of this incentive is distributed in the form of shares after a one-year period. Samsung Electronics stated that this incentive program is designed to promote responsible management and foster long-term performance. The current distribution of shares is related to incentives for the year 2024.

The company clarified that the shares to be distributed represent 0.019 percent of Samsung's outstanding shares and are anticipated to have a limited impact on the overall share value.