SK Hynix Labor and Management Reach Tentative Agreement: 60% of Performance Bonus to Be Paid in Stock

Odaily News: SK Hynix labor and management have reached a tentative agreement on the 2026 wage and collective bargaining agreement (CBA). The most contentious issue—the performance bonus (PS, or profit sharing)—is proposed to be paid out as 40% in cash and 60% in company stock.

It is reported that SK Hynix's union has convened an emergency general meeting to explain the tentative 2026 labor agreement to employees. Under the proposal, 40% of the performance bonus will be paid in cash during the current year, with the remaining 60% paid in company stock. Of the stock component, 40% can be sold in the same year, while the remaining 20% will be deferred. The union is expected to hold a vote among representatives in the near future to finalize the tentative agreement.

The tentative agreement also includes a 6.3% wage increase and an enhancement of corporate welfare points. Through intensive negotiations and representative talks, the two sides have gradually narrowed their differences on key issues such as the payment method for performance bonuses and the scope of wage increases.

Previously, SK Hynix labor and management had agreed to abolish the cap on performance bonuses, which was previously set at 10% of operating profit, and to maintain this system for 10 years. At that time, it was stipulated that 80% of the performance bonus would be paid in cash in the current year, with the remaining 20% deferred over two years at 10% per year. (Chosun)