Samsung Electronics reached a tentative wage agreement to pay employee bonuses using treasury stock. This deal successfully averted a major strike within the company’s semiconductor division.
Shareholder advocacy groups are now threatening legal action to block the plan. Investors claim the distribution of pre-tax profits without a shareholder vote violates corporate law.
One advocacy group plans to file a lawsuit to nullify the agreement. The dispute forces Samsung to navigate a conflict between labor demands and corporate governance standards.