SK hynix will pay employees a record 2,964 percent of their monthly base salary as a performance bonus, after the memory chipmaker reported its highest-ever annual operating profit of 47.2 trillion won ($32.2 billion) in 2025.

Under its revamped performance-sharing scheme introduced following labor-management negotiations last September, SK hynix allocates 10 percent of annual operating profit to employee bonuses, with no upper limit. This year’s profit-sharing payout amounts to roughly 4.5 trillion won.

For an employee earning 100 million won annually, the bonus equates to about 148.2 million won.

This performance-linked compensation follows a standout year driven by surging demand for high-bandwidth memory, particularly from global AI leaders such as Nvidia and Microsoft. Eighty percent of the profit sharing will be upfront, with the remaining 20 percent deferred over two years.

Including additional semiannual productivity incentives, SK hynix’s total 2025 performance-based compensation reaches 3,264 percent of monthly base salary, which is nearly double last year’s combined payout of 1,500 percent.

The bonus overhaul aims to boost talent retention and align SK hynix’s compensation with global peers like TSMC, which also ties bonuses to around 10 percent of operating profit.

The firm’s strategy appears to be paying off. Not only did SK hynix surpass Samsung Electronics in annual operating profit for the first time, but it also achieved a 58 percent quarterly operating margin in the fourth quarter. HBM3E shipments soared, and next-generation HBM4 production has already begun.

In tandem, the company has launched employee stock ownership options and retirement fund incentives to enhance long-term engagement.

By Moon Joon-hyun (mjh@heraldcorp.com)