But financial sector sees compensation slashed as recession looms
The year-end brought delight to shipping and refining employees in Asia as their employers delivered massive bonuses following strong revenue in 2022.
In Taiwan, container shipping company Evergreen Marine extended year-end bonuses worth up to 52 months pay, according to local media.
Most employees were granted bonuses that ranged from 10 to 45 months of their wages, while some employees with commended performances were given bonuses worth 52 months, Taipei Times reported.
The massive bonus came as the company posted a net profit of $9.91 billion in the first three quarters of 2022, a 92% increase year-on-year, the report added.
Similarly, it was also reported that Taiwan-based shipping firm Yang Ming Marine would be granting its employees with a bonus equivalent to 13 months of their wages.
In South Korea, refining company Hyundai Oilbank will also be giving employees bonuses worth up to 1,000% of their base salaries.
The Korea Herald reported that the massive bonuses follows the growth of the company's operating profit by 226% on-year to 2.8 trillion won ($2.2 billion) in the third quarter.
"Global dynamics is the key factor that decides refining companies' profit. Due to the prolonged impact of Russia’s invasion of Ukraine and increasing demand for heating during winter, global oil price surged which in turn spiked our retail price," an anonymous source told The Korea Herald.
Other major refining companies including SK Energy, S-Oil, and GS Caltex said they are still deciding on employees' bonus rates, according to the report.
Providing bonuses is one of the many measures that employers carry out to attract and retain talent. During the pandemic, many of them have extended massive bonuses to reward staff who have been working at the frontlines.
However, bankers at Morgan Stanley in Asia are said to be facing smaller year-end bonuses, according to Reuters, with plans to cut down investment bankers' annual bonuses by as much as 50% in Asia. The firm is said to be reigning in costs to tackle tough market conditions that have hit its revenue.
The move will reduce the Asia-based employees' overall compensation by an average of 30%, according to the report, with the possibility the bonus cut will be replicated in Morgan Stanley's US and European operations.
Other firms in the sector are also planning cuts, says Reuters, including Goldman Sachs Group, Citigroup and Bank of America.
