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SK hynix removes profit-sharing cap and shifts bonuses to 60% stock under tentative union deal
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SK hynix and its labor union reached a tentative agreement that removes the 10% operating profit cap on profit-sharing, adds a 6.3% wage increase, and splits bonuses into 40% cash and 60% stock.
With record memory profits driven by AI demand, the dispute threatened strikes at a major memory supplier. The resolution removes the cap for 10 years but introduces stock-based compensation that exposes employees to share price risk and potential tax complications.
Written by elseif from the cluster below · every claim links back to a sourceThe three things worth knowing
SK hynix will remove the 10% operating profit ceiling on its profit-sharing program and maintain the mechanism for 10 years.
Bonuses will be paid as 40% cash and 60% stock, replacing the previous all-cash scheme of 80% immediate and 20% deferred.
If operating profit reaches 25 trillion won this year, the profit-sharing pool would total 2.5 trillion won, averaging roughly $50,000 per employee.
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