SK Hynix (SKHY.US) “Sky Price Bonus” distribution plan was initially finalized: 60% shares will be issued and 40% cash will be paid, which is expected to reach 779 million won per capita

The Zhitong Finance App learned that according to a source familiar with the matter, South Korean chip giant SK Hynix (SKHY.US) has agreed on a preliminary salary agreement and plans to distribute 60% of this year's employee bonuses in the form of company shares, while the remaining 40% will be paid in cash. The source said that the relevant agreement was being discussed by trade union representatives, and since he was not authorized to speak out to the media, the source requested anonymity.

Last year, SK Hynix reached a ten-year agreement with employees, promising to share 10% of the annual operating profit with employees in cash. However, this year, management proposed exchanging more than half of the prize money for shares and limiting sales within a certain period of time. This plan has triggered opposition from some employees, who are concerned about the volatility of the company's stock price. SK Hynix declined to comment.

Benefiting from the artificial intelligence (AI) boom, SK Hynix's performance has risen sharply, and employee bonuses have also soared. According to estimates, the company's annual bonus per employee is expected to reach 779 million won (approximately $547,000) in 2026.

The source further pointed out that according to the latest plan, employees will receive shares equivalent to 40% of the total bonus amount in 2027, while the distribution of the remaining 20% of the shares will be delayed until 2028 and 2029, and there is no sales limit for these shares. The remaining 40% of the bonus will be paid in a lump sum in cash in 2027.

Additionally, SK Hynix announced on Wednesday that it will repurchase and cancel treasury shares worth 40 trillion won (US$28.6 billion) and use more than 50% of the free cash flow generated between 2025 and 2027 to increase shareholder returns. Boosted by this news, the company's stock price surged 13% on Thursday.