Samsung Electronics Co.s compensation system is characterized by its strong pay-for-performance plan. In particular, its profit sharing scheme is provoking a strong interest among many practitioners and researchers. Our case aims to trace the recent changes in compensation systems in Samsung Electronics Co., and to draw lessons for other companies wishing to introduce similar performance-based pay. A historical and in-depth analysis shows that compensation for the employees contribution has been a long-time tradition in Samsung Electronics, but its importance in total compensation and specific practices has been shaped under the pressure of the environment and business strategy. Current compensation system is designed with a view to increase the individual and group performance, just after the financial crisis of 1997. Under the current system, the high performers can receive more than double of the low performers. This strong difference of the pay level according to the performance results is reported to strengthen the performance culture.