November 06, 2024

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Korea’s highest salary earner last year was Samsung Electronics vice chairman and CEO Kwon Oh-hyun, who received 14.9 billion won ($12.8 million) -- about 40 million won a day.

While Kwon’s salary is considered colossal even among Korean CEOs, The Korea Herald Superrich Team found a discrepancy when comparing the salaries of top CEOs at home and abroad by analyzing information released by the Financial Supervisory Service, Forbes magazine, and Equilar, an information provider of executive compensation. 

The world’s top salary went to Oracle co-CEO Mark Hurd with a compensation of $53.2 million last year -- more than four times that of Kwon’s.

However, the revenues of their respective companies indicate just the opposite. While Oracle recorded a revenue of $38.2 billion last year, Samsung Electronics posted five times more at $172.5 billion.

For this reason, industry insiders have criticized the excessively high salaries of CEOs abroad and the relatively smaller salaries of domestic CEOs despite the international standards of select Korean companies.

According to Equilar, foreign companies have a “tendency to excessively compensate by granting stocks as an incentive in order to improve company performance,” which results in CEOs earning high salaries, for it includes high cash bonuses, stocks, stock options as well as the basic salary.

Korea’s second top salary earner was Hanmi Semiconductor vice chairman Kwak Dong-shin. With a basic pay of 2.1 billion won, performance-related pay worth 1.1 billion won, and retirement income worth 8.3 billion won, his total compensation last year came to 11.6 billion won.

Having worked 18 years at Hanmi Semiconductor, newly reelected outside director Kwak, who is also the son of Hanmi Semiconductor chairman Kwak Noh-kwon, received his retirement income last year, with no further payments to be made on that count.

In third place came Hyundai Motor Group chairman Chung Mong-koo. Combining his earnings from Hyundai Motors, Hyundai Mobis, and Hyundai Glovis, he received 9.8 billion won -- the highest salary of all conglomerate heads.

In fourth place, Inzi Controls chairman Jung Koo-ryong earned 8.3 billion won, which included his basic pay of 1.2 billion won and retirement income of 7.1 billion won.

CJ CheilJedang chairman Sohn Kyung-shik ranked fifth in the ranking with 8.3 billion won.

The other heads of conglomerates subsequently ranked No. 6, No. 8 and No. 10 -- with Hanjin Group chairman Cho Yang-ho earning 6.4 billion won, LG Group chairman Koo Bon-moo 5.3 billion won, and Lotte Group chairman Shin Dong-bin 4.8 billion won, respectively.

Tailim Packaging chairman Chung Dong-sub, whose company was sold to IMM Private Equity last year, ranked No. 7 as he earned 6.2 billion won, which included his retirement fund. Chung decided to sell his company as he considered the possibility that it may split and thus depreciate in value when management rights are passed on to his children, according to industry insiders.

Moreover, SK film and chemical affiliate SKC former vice chairman Park Jang-suk ranked No. 9 by earning 4.8 billion won, which also included his retirement fund.

Of the top two global salary earners, Oracle co-CEO Mark Hurd and Safra Catz both received $53.2 million last year.

Ranking No. 3 was Walt Disney CEO Robert Iger, earning $43.5 million, and ranking No. 4 was Honeywell International CEO David Cote, who earned $33.1 million.

In fifth place came General Electric CEO Jeffrey Immelt with $26.4 million.

Of the top 10 global salary earners, the company with the highest revenue was American telecom giant AT&T with $146.8 billion. Its CEO Randall Stephenson ranked No. 7 with $22.4 million.

Meanwhile, those with a net worth of $1 billion cashed in large amounts in salary as well.

Ranking No. 1 in earning the highest salary out of all the billionaires in the world, 21st Century Fox co-chairman Rupert Murdoch earned $22.2 million last year. The Australian-born media tycoon has an estimated net worth of $12.6 billion.

Furthermore, the world’s third richest, Berkshire Hathaway CEO Warren Buffet, ranked No. 9. Having a Forbes estimated net worth of $68.3 billion, he earned $500,000 last year.

By The Korea Herald Superrich Team (seoyounglee@heraldcorp.com)
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Hong Seung-wan
Cheon Ye-seon
Seo Jee-yeon
Yoon Hyun-jong
Min Sang-seek
Lee Seo-young