SM Entertainment will distribute company shares to its employees.
SM Entertainment announced today that it would give each employee 50 company stock shares.
As part of its core strategy under the SM 3.0 multi-production system, SM aims to encourage employees who have contributed to the successful implementation of this transition. The company also intends to motivate its workforce for future growth by awarding 50 shares of its stock to most employees, excluding executives, through a stock grant. The total number of shares to be distributed is approximately 28,000, with an estimated value of around 2 billion KRW ($1.46 million).
Unlike stock options, which allow employees to purchase company shares at a lower price and sell them later, stock grants provide company shares at no cost. This will enable employees to directly benefit from rising stock prices, fostering company growth and encouraging long-term retention.
SM plans to buy back 1% of its shares to enhance shareholder value, totaling 235,895 shares (approximately 20.7 billion KRW). This follows a February buyback of 241,379 shares (about 15 billion KRW) and represents another step in returning value to shareholders approximately six months later. The company will either use the remaining 460,000 treasury shares for future investments or cancel them after further review.
For the first time since its founding, SM distributes company stock exclusively to employees, excluding executives, through stock grants.