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Print 18 comment(s) - last by tonyswash.. on Jul 21 at 8:03 PM

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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Good to see some honest businessmen...
By taisingera on 7/18/2014 7:53:56 PM , Rating: 1
I bet if Apple had a downturn like this, all the managers would be greedy and keep their bonuses. Maybe the everyone in the US Government should give back their entire salary because they are doing such a crappy job, unless you like to have open borders and totalitarianism.




RE: Good to see some honest businessmen...
By Brandon Hill (blog) on 7/18/2014 8:07:37 PM , Rating: 3
Isn't the approval rating of congress something like 4%? How would they feel if they only received 4% of their pay ;)


By ritualm on 7/18/2014 8:46:08 PM , Rating: 2
Heh, even 4% approval rating seems a bit high. ;)

OP is unaware that vilifying DT's least favorite tech company may not always be a good idea.


By Hakuryu on 7/19/2014 11:10:03 AM , Rating: 2
They probably wouldn't care, seeing as insider trading and 'gifts' are far more lucrative.


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.


RE: Good to see some honest businessmen...
By Reclaimer77 on 7/19/2014 12:52:53 PM , Rating: 2
Samsung made a TON of profit. It's not like these guys don't deserve their pay. Greedy? Wtf!


RE: Good to see some honest businessmen...
By Acupuncture on 7/19/2014 6:35:19 PM , Rating: 2
A "TON" of profit does not matter when Samsung forecasts a 20% decrease over the year prior. That is extremely worrisome for the company. It'll be interesting to see where Apple stands next week. One thing is for sure, market analysts (including DailyTech), don't know a goddamn thing about where the market will go. When Steve Jobs died and sites like DT predicated (and secretly hoped) for the fall of Apple, I bought a significant amount of AAPL knowing the company was extremely under valued. I've made a small fortune in the last year : )


By Reclaimer77 on 7/19/2014 9:57:02 PM , Rating: 2
There's absolutely no evidence they missed those forecasts because of these employees though. I see no reason why they should hand over their hard-earned money because of it.

Samsung lately has been making forecasts they just cannot meet. Like selling 100 million Galaxy S4's.


By Solandri on 7/21/2014 10:32:53 AM , Rating: 3
www.google.com/finance?q=aapl
If you put in a start date of Oct 7, 2011 (Jobs died on Oct 5), you'll see AAPL is up 73% since then.

But SSNLF (Samsung) is up 75% over the same time period.
MSFT is up 77%
NASDAQ is up 78%.
GOOG is up 127%.

You actually lost money investing in Apple instead of other tech stocks. You lost even more if you followed the sheep and invested heavily in Apple in 2012 (AAPL ballooned up before crashing back down - it still hasn't matched its 2012 high yet).


RE: Good to see some honest businessmen...
By tonyswash on 7/21/2014 9:07:00 AM , Rating: 1
Well done on making a comment about an article on the Samsung employee bonus repercussions of Samsung's ongoing business problems into an anti-Apple rant. That took a special sort of tunnel vision. The really interesting question, why it's Samsung and not Apple that has suffered a series of setbacks in the mobile device market, has clearly eluded your attention. Why fret about the bigger question when one can obsess about a little pile of bile?


RE: Good to see some honest businessmen...
By Cheesew1z69 on 7/21/2014 6:09:21 PM , Rating: 2
quote:
Why fret about the bigger question when one can obsess about a little pile of bile?
As you sit and obsess over Apple. How...ironic.


By tonyswash on 7/21/2014 8:03:43 PM , Rating: 2
It's Mr Bile himself :)


Oh Samsung
By Acupuncture on 7/19/14, Rating: -1
RE: Oh Samsung
By ritualm on 7/19/2014 1:35:28 PM , Rating: 2
If you have even a clue how managers and executives in these big corporations are paid, you'll realize that a 50% pay cut doesn't work in practice. Ever heard of stock options?

Oh right, you haven't.


RE: Oh Samsung
By atechfan on 7/19/2014 8:06:46 PM , Rating: 3
Lucky for Samsung, phones are just one of many things they make. Samsung could survive the total collapse of the entire phone market. Could Apple?


"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg














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