Major companies in South Korea including Samsung Electronics Co. and LG Electronics Inc. are slashing director payroll ceilings as they engage in efforts to cut costs amid the sluggish economy.

According to regulatory filings on Sunday, Samsung Electronics plans to propose a cut in the total cap of director payrolls to 43 billion won ($32.2 million) in 2024 from 48 billion won in 2023 at its regular shareholders‘ meeting scheduled later this month.

The plan is to lower the long-term performance-based compensation limit to 10 billion won from 15 billion won.

The general salary cap remains unchanged from last year at 33 billion won. The number of directors remains the same as last year at 11.

Samsung SDS Co. will reduce the number of directors to 7 in 2024 from 9 in 2023 and cut the total payroll limit from 10.6 billion won to 8.3 billion won.

Companies under LG Group, including LG Corp., LG Electronics, LG Chem Ltd., and LG Household & Health Care Co., are also reducing director payroll limits.

LG plans to propose a reduction in the total director payroll cap to 17 billion won this year from 18 billion won last year at its regular shareholders’ meeting scheduled at the end of this month.

The decision comes after considering various factors, including management performance, slowdown in domestic and global economic recovery, shareholder opinions, the company said.

LG Electronics will reduce its director payroll cap to 8 billion won from 9 billion won, LG Chem to 7 billion won from 8 billion won, and LG H&H to 6 billion won from 8 billion won.

As for SK Group, SK telecom Co. will slash its executive payroll limit to 10 billion won from 12 billion won.

SK square Co. plans to reduce the number of directors to 5 from 7 and cut the total payroll limit to 10 billion won this year from 12 billion won last year.

HD Hyundai Co. will maintain 5 directors, including Chairman Kwon Oh-gap and Vice Chairman Chung Ki-sun. The company, however, plans to reduce the total payroll limit to 2.7 billion won this year from 3.4 billion won last year.

By Oh Chan-jong and Chang Iou-chung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]