SK Hynix Reaches Tentative Labor-Management Agreement: 60% of Performance Bonus Paid in Company Stock

According to Yonhap News Agency, SK Hynix announced that labor and management have reached an agreement on a tentative labor accord. The biggest point of contention, the Performance Bonus (PS, excess profit distribution), is planned to be distributed as 40% cash and 60% company stock, with 40% sellable in the current year and another 20% deferred. Previously, SK Hynix labor and management agreed to cancel the PS bonus cap based on 10% of operating profit and maintain the system for 10 years. At that time, it was agreed that 80% of PS would be paid in cash in the current year, and the remaining 20% would be deferred over two years, 10% each year. It is reported that the SK Hynix union is expected to hold a representative vote in the near future to finalize the tentative agreement.