Samsung faced a big drop in profit this year. In the third quarter of this year, which ended on 30th September, the company reported a 60% drop in profit compared to the same period of last year. Now, the company is taking action to get its business back on track.
WSJ reports that, Samsung Mobile’s Head, J.K.Shin, who is one of the best paid executives in technology world, is getting a big pay cut this time. According to a regulatory filing, Shin earned 689 million Korean won ($6,30,000) in the third quarter of this year while he was paid 1.7 billion won ($1.5 million) in previous quarter. In the first quarter, Shin got 9.66 billion won ($8.8 million), which may include bonus from last year. or may not
Samsung is loosing market share around the world due to rise of low-cost and high end offering from Chinese companies such as Xiaomi which recently became the market leader in China. Samsung is still number one OEM in the world and is making lots of money. The company made 47.45 trillion won ($43 billion) in third quarter which is about 3 times more than Google’s but this move of pay cut gives how the situation is changing for the company.
As a result of Samsung’s rapidly declining profits (most of which has been in Shin’s mobile division), Shin’s wages, which includes his salary and performance bonus. What may be more hurting for Shin, is the fact that his salary cut is way deeper than his co-CEOs, including Kwon Oh-hyun, who heads Samsung’s components business and B.K. Yoon, who runs the company’s consumer-electronics divisions.