[Trans] Only the Executives of SM Enjoy Company’s Greatest Fruits with Bonuses

Only the Executives of SM Enjoy Company’s Greatest Fruits with Bonuses

2010.11.16

780,000 USD bonuses for company executives in the first half of the year

Average salary of other employees shrinks to under 16,000 USD

[Asiae Kyeongjae Reporter Lee Chang Hwan] On the strength of the popularity of its signed artists, such as Super Junior and Girls Generation, SM Entertainment recorded its highest ever gain in the first half of this year, but only executives of the company received the fruits through a showering of bonuses.  Their fellow executives received 3 times their usual paycheck in bonuses but regular employees, on the other hand, actually saw their salaries shrink. This is causing no small amount of shock, as it seems that the very managers under suspicion for signing Dong Bang Shin Ki, Girls Generation and others on to “slave contracts” are the ones being rewarded.

The Financial Supervisory Service revealed on the 16th that in the early half of this year SM gave out bonuses of 780,000 USD to CEO Kim Young Min and six other executives. This amount is 3 times the amount given out at the same time last year, which was 220,000 USD per person and substantially bigger than the amount given out the year before, which stood at around 300,000 USD.

The rise in the bonuses of the executives is a reflection of the rise of the company’s status overall. SM has recorded its highest ever gain since its inception thanks to the explosive popularity of Super Junior, Girls Generation and its other artists, leading to an increase in album and digital download sales.

In the first half of this year, the company’s total sales and operating profits stood at 47.5 million USD and 18.6 million USD respectively, which represents an increase of 59% and 385% relative to the same time last year when recorded total sales was 29.8 million USD and operating profits 3.8 million USD. For three years in a row, from 2006 to 2008, SM Entertainment recorded sales deficits, but last year, after pulling out of the red, the company has only been recording gains.

Financial firms are attributing the success of SM’s turnaround to the improvement of the business structure at the company. According to Daewoo Securities, “SM appears to be improving its business structure since 2009,” and “they were able to improve their sales numbers due to a strong line-up of artists in 6 teams who were able to draw in meaningful sales numbers.”

Analyst Kim Chang Kwong said, “More than anything, this is attributable to the success of BoA, Dong Bang Shin Ki and Girls Generation in the world’s second biggest music market, Japan,” and “the integration of modern technology, such as smart phones and smart TV and other related technologies to increase viewings of music videos and music downloads.”

Although it might seem obvious given this newfound success for the company to award its executives bonuses, it must also be pointed out that the company still has a long way to go and a lot of improving to do when it comes to the treatment of its regular employees and contracted artists. Currently, regular employees do not even have a bonus scheme and, if anything, their average salary has in fact decreased. In the first half of this year, SM paid 154 employees an average of 16,000 USD per person. This represents a diminished sum from what was given out at the same time last year, which was 17,000 USD per person on average.

According to a representative of the company, “Since the gains this year were much better than last year, we decided it would be a good idea to hand out incentive payments to our executives,” and, “compared to other similar companies, our pay levels are low, so we thought this would be a good move.”

However, in the current situation, where the company continues to be criticised for its treatment of its contracted artists, handing out bonuses to executives largely responsible for this represents a problem from an ethical point of view. It cannot be denied that contracted artists play a large role in the sales and operational profits of [the company], but the content of the contracts, once exposed to the public, has led it to be labeled slave contracts by many in the greater public.

At the current moment, Dong Bang Shin Ki members Kim Jaejoong, Park Yoochun, Kim Junsu as well as Super Junior’s Hangeng are engaged in large-scale lawsuits over their exclusive contracts.

Source: Asiae.co.kr

Translated by Jimmie of TheJYJFiles

Shared by: TheJYJFiles

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44 thoughts on “[Trans] Only the Executives of SM Enjoy Company’s Greatest Fruits with Bonuses

  1. SM is a disgusting company where the executives are the only ones living grandly on six figure paychecks while they shove their money-makers into small crowded dorms with paychecks lower than the working poor in the U.S.

  2. WOW, what a stuffed up system. SMent seriously you just make me keeping hating you more and more.

    Thnx for the Trans Jimmie.

  3. W.O.W
    just as bonuses, US$700,000+ ????!?!?!!? WTH ~ while other emplyees’ salary shrinked. I truly feel bad for them since they’re the one that put in the hard work
    SM, if you’re not “bloodsucker”, I dont know who is =_= and you still have no shame as to promote your company as a fair and ethical business?

  4. So while the boys get a deficit slip these executives are swimming in money that was earned by the hardwork of the boys. Disgusting!

    • ya, good point
      they claimed their company was in deficit, but they still somehow managed to give $200,000 bonus ~ the keyword here :BONUS ~ to their execs while telling the one that earned those money that there were no money left for them…

      despicable!!!!!

  5. When a company earns more than what is forecasted for the year, normally profit is shared among the employees. All employees are given incentives. But if you only give your top executives the extra profit earned and worse, cut off your othe employees’ earnings, then you are nothing but a shark. And withg SM, this horrendous business move is somewhat expected. I have no more words to say.

  6. This is truly vomit-inducing.
    SM is the WORST company in the world.
    And they criticize JYJ for being ungrateful. What nerve..
    Shame on you!

  7. The sad thing about this (after thinking about it a little more) is that SM is acting like the typical corrupt fortune 500 company that has employees in poverty while the executives are in the top 5% of the country(most wealthy people).
    I’m not surprised at all.

    • It’s sad because the corruptness is the status quo. It’s so ‘normal’ for a company to behave this way that ppl don’t get that there’s a more appropriate way to distribute profit if they want to stay true to human rights aspect of their employees. POINT BLANK PERIOD if someone put work in towards that profit they should RECEIVE IT. No hogging it in ‘bonuses’ only to the executives. It just makes me mad that this is the status quo.

      • i agree. what’s really scary is that this is like some hidden “accepted” situation.

    • But the difference between SM vs “corrupt fortune 500 company” is that the employee from the “corrupt fortune 500 company” still have the basic rights such as the right to privacy, fair compensation, and freedom from discrimination, and other rights including:
      – Right to be free from discrimination and harassment of all types;
      – Right to a safe workplace free of dangerous conditions, toxic substances, and other potential safety hazards;
      – Right to be free from retaliation for filing a claim or complaint against an employer (these are sometimes called “whistleblower” rights);
      – Right to fair wages for work performed.

      And what rights does employee of SW have again?

  8. I like how the reporter didn’t openly bash SM… but still kinda did. xD
    I have a question about the second paragraph though: how can 220,000 be bigger than 300,000? Or did I misunderstand something?
    *confused*

    • “The Financial Supervisory Service revealed on the 16th that in the early half of this year SM gave out bonuses of 780,000 USD to CEO Kim Young Min and six other executives. This amount is 3 times the amount given out at the same time last year, which was 220,000 USD per person and substantially bigger than the amount given out the year before, which stood at around 300,000 USD.”

      I think both amounts are in reference to the $780K figure – last yr. 200K, 3x bigger; 300K, substantially bigger than the yr. before the 200K.

      Call me cynical… I work for a NON-PROFIT and make more than what those poor staffers make! I guess in the minds of the powers that be at SME, executives work REALLY hard!!! A lot of sweat is generated pushing papers around on a desk!
      There must be a horror movie script in here somewhere. Can’t wait to see the trailers for that one!!

  9. I wonder if the SM artists are even allowed to see things like these and what reaction they will have once they realize they are sacrificing themselves to give their bosses a handsome bonus. This is probably what the company means by “family.” Disgusting.

    • I bet it was those bonuses that had Micky double taking his account.
      DEFICITS???? HOW? CAUSE OF EXPENSES???? HOW?

      yeah those ‘expenses’ are BONUSES. smh.

  10. Pingback: (TRANS) Only the Executives of SM Enjoy Company’s Greatest Fruits with Bonuses « jyj3

  11. i want JYJ win the lawsuit and destroyed this company. Its okay for the exec and CEO to get their bonuses since its their company and management. but its definitely not okay when its not been distributed to the other staffs and employee. ITS NOT OKAY AND JUSTIFIED. capslock cx even describe my disgust. No wonder they despite and try their best to destroy JYJ since lots of things will be expose to public and hell yeah they been hogging all the big bucks. To think that the so called SM TOWN family keep praising how good and loving is SME. Loving my ass!

  12. Disgusting!! This reminds me of Sungkyunkwan Scandal, where the seniors are always seniors; the juniors are always juniors; and civilians are always civilians. The seniors get the most money and have the most power. No matter how bad their sons are, their sons still inherit the title. And no matter how hard the civilians work, they are still the normal people. It seems like SM is adapting the same theory ><

    Well, don't they know that dictatorship will cause decline? No people will want to work for this shity company! I'll see when you will close down!

  13. This is horrible. Even my company which is a small company in a developing country still gives bonus and incentives to its employee once in a year (and we are just staff not marketing). Marketing receives much bigger.

    SM truly is a very greedy company.

  14. Thanks for sharing this article, very insightful.

    I’m somehow speechless, This kind of dictatorship company still exists in S.Korea,
    where S.Koreans claim they followed Western laws, and claim they are so different and more eveloped than their North Korean neighbors. Double standards I see.

  15. Man I really REALLY wish someone would talk some sense into the person who made the site “truetvxq.blogspot” I mean she is just getting all the information from one side of the story and twisting it to make it look like its the truth. Honestly I find her quite ignorant because she doesn’t seem to know a whole lot about the law or the Korean entertainment business. I understand that she doesn’t like JYJ but to make it seem as if the whole lawsuit is their fault is just plan stupid. HoMin aren’t angels, they knew problems would arise so I really hope someone from here will talk some sense into that poor girl.

    • there’s no talking to that girl. She’s masquerading as an “objective” person breaking down the “truths” of the contract. I once told off a fan of “a certain pair” when she said that website was the truth and that anything else was a lie. Once I brought the girl’s lack of credentials to light, I never got a reply.
      They believe what they want to believe, there’s no need bothering with those people.

      • i think she’s on 6theory too and on sharing yoochun cookies&cream something
        i once very politely broke down her arguments and asked her to prove the stuff she was posting and BAM!
        disappeared without a trace.
        makes me think this is a planned op. on true tvxq’s part
        if they want to play with fire i’m sick of being nice to them by ignoring them and letting them brainwash people.
        I’m actually shocked with some of the crap they get away with posting
        i’ll fight fire with fire.

  16. I just discover this website and I want to thank you to explain this case under business people point view ^^ Always reading fan’s comments is a bit tiring (I don’t say that i don’t love them!) but you guys, make it smarter 🙂

  17. When you do business with human as your main product, it smell unjustified because it will lead to treat your product as a ‘product’ not human. And in the end, the one who get all the praise and benefit is not the idol, because well, you’re just a ‘product’, it was all thanks to the Company that able to market its ‘product’ and gain a profit from it.
    That’s a sad reality, but that what business is.

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