Magnachip executives agree to salary reductions

Published 30/04/2025, 22:06
Magnachip executives agree to salary reductions

In a recent 8-K filing with the Securities and Exchange Commission, Magnachip Semiconductor Corporation announced significant changes to the compensation arrangements for its top executives. The company’s CEO, Young-Joon (YJ) Kim, has agreed to a 20% reduction in his annual base salary, effective from April 1, 2025. This salary cut will stay in place until the company records positive operating income for two consecutive fiscal quarters. Following this, his salary will revert to its original figure.

Similarly, Chief Financial Officer Shin Young Park has consented to a 10% salary cut under the same conditions as the CEO. Both salary reductions are part of broader agreements aimed at adjusting executive compensation in line with company performance.

The filing also detailed an amended agreement for the CFO, which increases her annual base salary from $350,000 to $360,000, effective from April 1, 2025, and maintains her current annual cash bonus opportunity at 75% of her base salary. The agreement includes provisions for additional severance payments under certain conditions related to corporate transactions and changes in control.

These executive compensation adjustments come amid broader corporate governance practices, such as clawback provisions in the company’s Compensation Recovery Policy. The details of these agreements will be fully disclosed in Magnachip’s next Quarterly Report on Form 10-Q.

The information provided in this article is based on Magnachip’s SEC filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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