By giving out bonuses of approximately $1 billion dollars to its employees to commemorate the company?s success, Samsung may have struck a nerve with its shareholders. Shareholders had demanded larger dividends or stock buybacks with some of the company?s $50 billion that the company holds in reserve. Instead the company took a hit to its operating profit and gave most of the company?s 240,000 employees an average of $4,000 each. Samsung gives about 1% dividend, which is the norm for South Korea. Investors? reaction could be seen in the drop in Samsung stock despite impressive profits.
See "UPDATE 3-Samsung Electronics sparks divided debate after big worker bonus", Reuters, January 6, 2014