SK and Doosan lead South Korean executive stock compensation surge

Stock-based compensation, particularly Restricted Stock Units (RSU), is significantly reshaping executive pay structures among major South Korean conglomerates. According to data from CEO Score, stock-based rewards accounted for 36.4% of the total compensation for 661 high-earners (those receiving over 500 million won) in the first half of the year.

SK Group led the group in total stock compensation, with 30 individuals receiving 153.4 billion won. Doosan Group followed with 18 individuals receiving 80.8 billion won. These two groups combined accounted for over 63% of all stock-based rewards. The surge is attributed to improved performance and rising stock prices in the semiconductor and power generation sectors, driven by AI demand.

Among professional managers, SK executives including SK Hynix President Kwak Noh-jung were among the highest recipients. While the system is intended to align management interests with shareholder value, academic critics warn that RSUs could be exploited as a tool for controlling families to strengthen dominance without personal capital, noting a lack of regulatory safeguards compared to traditional stock options.