Reaping Rewards
Fourteen executive-level directors of Samsung Group have exercised stock options, each of them reaping before tax earnings exceeding 500 million won, or US$466,400, according to Chaebol.com on February 9.
It is estimated that 9 out of 14 that exercised stock options gained 1 billion (US$932,500) before taxes, following a pattern that has begun when Samsung employees started cashing in as shares began surpassing 1 million won (US$932.50).
Stock options are stocks that are given to company employees at below-market price, that can be “exercised,” meaning they can be re-sold, or cashed in later.
The most earnings gained from the month’s stock options was from Vice CEO Wang, who sold 4,905 shares at 1.432 million won (US$1,335.46) apiece. He had received the stocks in the early 2000’s at 580,300 won (US$541.20) each. His sell resulted in a whopping 4.1 billion won (US$3.8 million) net profit.
Samsung Electronics’ Vice President Kwon Oh-hyun also made a handsome profit as well. He sold 2,500 shares for 1.47 million won (US$1,370) a share, which he originally received for 272,700 won per share (US$254).
Samsung’s Executive Director Park Byung-ha and Director Park In-sik also gained 2.2 billion won (US$2 million) and 2.1 billion won (US$1.987 million), respectively, by cashing in their stocks.
In 2012, Choi Ji-sung of Samsung Strategic Planning Office had cashed in his stock options, earning 3.87 billion won (US$3.6 million), and Yeon Ju-hwa, then president of Samsung Electronics, got 3.7 billion won (US$3.4 million) from his stock options.