Samsung Managers Voluntarily Give Back 2014 Bonuses Following Decline In Profits For First Half
Almost 200 Samsung managers have voluntarily given back a portion of their bonuses for the first half of the year in a gesture meant to show accountability for poor performance.
The managers gave back a quarter of their bonuses for the first half of the year in response to a decline in profits for Samsung, according to Reuters. The South Korean giant didn't take a loss for the April to June period, but reported a profit far below expectations on the back of slow smartphone sales.
Sales in the industry have slowed in general as of late, putting the pressure on the big companies to find new ways to maintain or increase market share. Management returning bonuses following poor company performance is not an uncommon practice in South Korea and Japan, and is meant to demonstrate that the employees will try harder to move back in a positive direction.
Declining sales and increased competition (both globally and from regional brands such as Chinese companies Xiaomi and Lenovo) are slowing industry growth as the market gets increasingly saturated. It's no wonder more companies are looking to emerging markets as the next major source of business, with large untapped populations potentially offering millions of sales.
We've seen more word of cheaper and more affordable devices making the news, as selling premium smartphones such as the iPhone, Galaxy S5, or HTC One in places like Brazil and parts of Asia are likely unviable. It remains to be seen if a major manufacturer will jump into one of these regions in a big way soon, or if they will all refocus efforts on current markets to maximize sales.