Samsung shares hit record high, but the company slashes bonuses for the mobile division

Samsung shares hit record high, but the company slashes bonuses for the mobile division

Buoyed by strategy evaluations and management structure reshuffles, Samsung shares are hitting record high today. The company is reportedly having internal meetings between departments this week to plot the course of action on the way to earn at least $25 billion of operating profit next year. These are encouraging signs that Samsung is trying to put the Note 7 recall behind its back, and look forward to 2017, the Galaxy S8, and the OLED iPhone 8 which is said to come with Samsung display panels.

That's not to say that the Note 7 episode has gone without repercussions at the company, though. After writing off $5 billion in profit for this and next quarters, Korean media is reporting that the mobile department will bear the brunt of the consequences. 

Samsung has allegedly slashed the year-end bonuses of the division from 50% to 17% of the monthly income. That has been Samsung Mobile's incentive in previous years when the smartphone unit was the bright shining light in the company, but this year it will be the employees in the semiconductor department who will get the 50% bonus instead.

source: Korea Herald (1),(2)

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20 Comments

1. Mxyzptlk unregistered

Gee I wonder why. I guess the mobile division was a bomb.

2. turk_az

Posts: 75; Member since: May 11, 2012

i believe you are Dumb.

6. Mxyzptlk unregistered

I believe you are mentally incompetent.

17. bobby84

Posts: 595; Member since: May 13, 2016

Still have and use my note7 and couldn't care less what nobody thinks.

18. kiko007

Posts: 7469; Member since: Feb 17, 2016

That's great.....but I'm pretty sure the majority of people couldn't care less about what you couldn't care less for.

22. Chrusti

Posts: 92; Member since: Jul 25, 2015

cant wait for the s8

3. ctdog4748

Posts: 797; Member since: Mar 05, 2016

The mobile division employees shouldn't get any bonus, considering the disaster that was the Note 7.

11. LilJokr unregistered

Oh please. The 7/Edge were still great hits so they still deserve bonuses in that perspective.

4. peegieislim

Posts: 68; Member since: Dec 14, 2016

I guess trojan horse was right samsung is really having a life good.

5. Kevro_86

Posts: 65; Member since: Oct 19, 2011

Fix the exploding battery issue and bring back the freaking IR Blaster and they can have their bonuses back! ☺️

7. Joosty

Posts: 462; Member since: Mar 14, 2013

Samsung to their mobile divisions - "You have all dishonor your famirees! No bonus for you!"

8. sissy246

Posts: 6959; Member since: Mar 04, 2015

I am not sure cutting it that much was right. Down to 25 % might have been more like it. But to all you that said Samsung is dead, they are still going strong.

9. Joosty

Posts: 462; Member since: Mar 14, 2013

Samsung is a conglomerate. They will never die. They could manufacture anything they wanted, and consumers would buy it.

10. cdm283813

Posts: 424; Member since: Jan 10, 2015

I'm betting that Samsung is going to have a killer 2017 in the mobile division. And that's coming from someone that will probably buy a 2017 iPhone. Competition is what makes our phones great so don't waste time hating.

21. cmdacos

Posts: 3819; Member since: Nov 01, 2016

Competition is great until someone tries to fall backwards to match Apple's need to remove valuable components.

12. MartyK

Posts: 1043; Member since: Apr 11, 2012

Mobile division is the only one who gets small bonus? Why not the people who actually made the final decision on the design and purchasing division get the small bonuses? They are the one who's in charge of the product.

13. jm405

Posts: 81; Member since: Mar 22, 2016

No Soup for you Mobile Division! Samsung products are generally good. I love their 4k TVs. I bought a couple of them over black Friday with sales that I couldn't resist.

14. sipha

Posts: 439; Member since: May 12, 2012

Aint you suppose to actually state the amount, like how high are they?? the whole article seems useless without that!!

23. Tyrion_Lannister unregistered

It depends on the income. A person with higher income will get higher bonus. As simple as that. Which part of the 50% of monthly income did you not understand.

15. darkkjedii

Posts: 30786; Member since: Feb 05, 2011

Make em earn the bonuses, by coming back strong in 2017. They shouldn't get any this year, for making the best phone ever...potentially the worst. 2017 hurry up, I need that bad ass Note 8 in my life.

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