SK Hynix has reached a tentative wage agreement with employees in South Korea that would see 60% of this year’s bonuses paid in company shares, replacing the all-cash structure used last year.

The AI-driven memory boom has sharply increased SK Hynix’s profits and employee bonuses. Workers are expected to receive an average payout of about 779 million won ($547,000) for 2026.

Under the proposed agreement, employees would receive 40% of their bonuses in cash and 40% in immediately sellable stock. The remaining 20% would be paid as deferred shares, with half vesting after one year and the rest after two years.

The deal also includes a 6.3% increase in base wages and allows SK Hynix to defer up to 3% of wages if the company records losses.

Management had pushed for a larger stock component to reduce the strain of massive cash payouts, though some workers expressed concern about share-price volatility. The agreement still requires approval from union members.

The proposal comes as SK Hynix also expands shareholder returns, including a planned 40 trillion won ($28.6 billion) share buyback and cancellation program.