SK Hynix (SKHY.US) has preliminarily finalized its "sky-high bonus" distribution plan: 60% will be allocated in stocks and 40% in cash, with an average expected to reach 779 million won per person.

According to an informed source, South Korean chip giant SK Hynix (SKHY.US) has reached a preliminary agreement on salaries, planning to distribute 60% of this year's employee bonuses in the form of company stock, with the remaining 40% paid in cash. The source indicated that the relevant agreement is currently being discussed by union representatives, and requested anonymity as they were not authorized to speak to the media. Last year, SK Hynix reached a ten-year agreement with employees, committing to share 10% of annual operating profits in cash with employees. However, this year, management proposed to convert more than half of the bonuses into stock, with restrictions on selling for a certain period, a plan that has drawn opposition from some employees who are concerned about the volatility of the company's stock price. SK Hynix declined to comment. Benefiting from the AI boom, SK Hynix's performance has significantly increased, and employee bonuses have risen accordingly. It is estimated that by 2026, the average bonus per employee at the company could reach 779 million won (approximately $547,000). The source further pointed out that under the latest plan, employees will receive stock equivalent to 40% of the total bonuses in 2027, while the remaining 20% of the stock will be deferred to be distributed in 2028 and 2029, without any lock-up period. The remaining 40% of the bonuses will be paid in cash in a lump sum in 2027. In addition, SK Hynix announced on Wednesday that it will repurchase and cancel treasury stock worth 40 trillion won (approximately $28.6 billion) and will use more than 50% of the free cash flow generated between 2025 and 2027 to enhance shareholder returns. Following this news, the companys stock surged 13% on Thursday.