[Edaily Reporter Shin Yeong-bin ] Samsung SDS (SAMSUNG SDS CO., LTD.(018260)) has extended the period for gathering employee feedback on its proposed performance compensation and evaluation system reform until July 7. The company explained that this decision reflects employee feedback that sufficient time for review is necessary, given that the personnel system reform represents a significant change affecting employee compensation and evaluation.

According to industry sources on the 30th, Samsung SDS has extended the voting period for gathering feedback on the new HR system reform—currently underway among all employees—until July 7. The vote was originally scheduled to close on the 29th of this month.

This reform plan involves a comprehensive overhaul of the performance compensation and evaluation system. The incentive system will be restructured to allow for higher payout rates linked to the company’s profits and increased corporate value. The key objectives are to enhance the transparency of compensation criteria by utilizing publicly disclosed metrics and to expand performance-based rewards.

The new incentive system sets a baseline of 20% of annual salary, which exceeds recent performance-based and target-based incentives. The payout multiplier can be applied up to a maximum of two times based on market indicators such as year-over-year pre-tax profit growth, year-over-year stock price return, and stock price growth relative to the IT services sector. The system also incorporates additional payout multipliers based on individual performance to provide greater rewards to top performers.

It is reported that the shares received can be converted to cash on the same day without any lock-up period. However, the plan also includes a provision to grant an additional 15% of the number of shares received to employees who hold them for one year without selling.

The evaluation system will also shift from the existing twice-yearly evaluations to an annual performance and competency evaluation system. Performance evaluations will focus on work outcomes, such as the degree to which individual goals are met, and will be reflected in incentive calculations, while competency evaluations will assess the level of expertise and capabilities required for job performance and will be used to determine annual salaries.

A Samsung SDS spokesperson stated, “Since this personnel system overhaul represents a significant change affecting employee compensation and evaluations, many employees expressed the need for more time to thoroughly review the details and make a careful decision,” adding, “We have extended the period to allow employees sufficient time to review and assess the details of the revised system.”