Suddenly there was a pay cut
China Fund News Taylor
Today, there are big melons in the financial circle, not waiting for interest rate cuts, waiting for salary cuts, market rumors, a certain Chinese head brokerage has cut salaries.
Top brokerage investment banks cut salaries
Today, a user posted on a social platform that a Chinese brokerage investment bank cut salaries, except for MD (managing director) all employees cut salaries.
The senior manager (SA1) directly dropped by 6000, the vice president (VP) dropped by 8000 to 10000,
Some people why MD does not reduce salary, some people point out that the fact is that it is said that MD as a whole will move the decimal point of pay forward by one place
According to brokerage China, the above news is basically true.
In May 2022, the China Securities Association issued the Guidelines for Securities Companies to Establish a Robust Remuneration System. In August of the same year, the Ministry of Finance issued a "wage limit order" against state-owned financial enterprises.
On February 23, 2023, the website of the State Supervision Commission of the Central Commission for Discipline Inspection published an article entitled "Resolutely Winning the Protracted Battle against Corruption". It pointed out that it is necessary to break through the erroneous ideas of "financial elites", "money-only theory" and "Western alignment theory", and rectify the hedonism and extravagance that overly pursue the "refinement" of life and the "high-end" taste.
According to the statistics of the fund report, the 26 A-share listed brokers/brokerage concept stocks showed that only 4 employees, Guotai Junan, Everbright Securities, Hongta Securities and Oriental Fortune, did not decrease their salaries, and the remaining 22 had different degrees of decline.
In addition, there are also rumors in the industry that "the regulation requires the salary of the top securities firms to be in line with Galaxy Securities, and the standard of alignment is not the current Galaxy Securities, but Galaxy Securities takes the lead in reducing salaries first, and other top securities firms are on par with Galaxy Securities after salary reduction." ”
Galaxy Securities, which is considered to be the top brokerage to reduce salaries in line with the standard, has a per capita salary of 576,500 yuan in 2022, a slight decrease of 07,500 yuan from 2021.
In addition, the total annual compensation of CITIC Securities executives in 2022 will be 104 million yuan, a decrease of 62.4572 million yuan from 166 million yuan in the same period of the previous year, a year-on-year decrease of 37.51%.
Regarding the salary cut, Zhang Youjun, chairman of CITIC Securities, responded at the results briefing on March 31: "The remuneration and incentives are strictly in accordance with the relevant provisions of the company's governance structure, and the company's board of directors, remuneration committee and employee representative assembly jointly study and formulate the remuneration system; Companies will also consider setting up compensation management measures in accordance with the remuneration guidelines and guidance of the competent authorities. ”
In addition, Zhang Youjun also said that the future salary system will also fully reflect the short-term and long-term, different levels, including the different requirements and layout of front and back office employees, and the future salary system can satisfy shareholders and employees.
At the same time, CICC's executives also experienced a sharp salary cut, and the total annual salary of directors and supervisors in 2022 was 41.262 million yuan, shrinking by 53.154 million yuan, down 56.30% from 94.416 million yuan in 2021, becoming the securities firm with the largest decline in the disclosed data, exceeding 37.51% of "Yige" CITIC Securities.
Some analysts said, "Securities companies' salary cuts are mainly related to the market environmental impact, and the decline in brokerage performance has a certain connection, the previous 'salary' incident, caused the pressure of industry salary adjustment, and the introduction of relevant policies has also made the salary treatment of the brokerage industry gradually return to rationality."