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Total value of returned bonuses is pegged at $2.3 million

Over the past six months, Samsung has flooded the market with a wealth of smartphones and tablets. We’ve seen the launch of the Galaxy S5, Galaxy S5 Active, Galaxy S5 Sport, Galaxy S5 LTE-A, Galaxy S5 mini, and Galaxy W. On the tablet front, the company has released the Galaxy Tab 4 and Galaxy Tab S series.
 
Despite a wealth of new smartphone and tablet products blanketing a wide range of price points, Samsung’s profit guidance for the April-June quarter is coming in well below analysts’ estimates. Samsung has cited a number of reasons for its profit decline including a strong Won, a broad slowdown in the global electronics sector, and more specifically, tablet sales that have “declined more than expected.”


Galaxy S5 LTE-A
 
At least 200 managers from the South Korean company are taking the profit downturn to heart, and have voluntarily returned a quarter of their first half bonuses. According to South Korean media outlets, the value of the returned bonuses is around $2.92 million.
 
$2.92 million is a relative drop in the bucket compared to the $7.35B net profit that Samsung made during the first quarter. However, Reuters reports that the gesture is largely symbolic to show that the managers take responsibility for the profit decline and will work even harder to improve the company’s performance in the future.
 
Samsung's mobile division still has time to shine this year, as the next big release on the schedule is the Galaxy Note 4. The next generation “phablet” is set to feature a QHD display, with some variants being powered by either the new Exynos ModAP or Exynos 5433 processors.

Source: Reuters



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RE: Good to see some honest businessmen...
By amanojaku on 7/18/2014 8:22:59 PM , Rating: 5
quote:
I bet if Apple had a downturn like this, all the managers would be greedy and keep their bonuses.
Neither would most American managers and executives, it's not limited to Apple. From what the source article says, this appears to be a matter of culture - high-level employees of South Korean companies frequently return bonuses when the company under-performs.


By Solandri on 7/18/2014 11:44:36 PM , Rating: 2
I prefer to see it the other way around. Returning your bonus (or just not getting one) when your company underperforms is normal. Expecting/keeping a bonus in that situation is the cultural abnormality.


By danjw1 on 7/19/2014 8:33:12 AM , Rating: 2
Some in the financial industry did, when regulators offered them that or not getting bailed out. So, it isn't completely unheard of here. They just need a gun to there head to do it.


By Piiman on 7/19/2014 12:27:25 PM , Rating: 2
Yes here they might get fired but get a multi million $$$ out the door package to go with them or they just give themselves a bigger bonus and lay off the real workers.


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