Every reporter Liu Jiakui, every editor Liao Dan
Recently, the news of a joint-stock bank's "all-staff pay cut" has sparked a heated debate. Many bankers have said that their performance has been "discounted" year after year, and there are even business units with a "40% discount".
The reporter noticed that on the network platform, bank employees also frequently complained about "pay cuts." "the performance has already been discounted by 40% last year, and this year is a further 30% discount on the 40% discount last year, which is calculated to be 4% of the year before last.Powerballnumbersforlastnightdrawing. 80% discount, cut by more than half ah, this wave is too ruthless. " Some bank employees said.
With the disclosure of the annual reports of 42 A-share listed banks, the compensation situation of each bank in 2023 also surfaced. Is the bank salary really "broken" as the bank staff said? As the annual reports of listed banks are disclosed one after another, the compensation data have been reflected more intuitively.
According to the statistics of each reporter, the total salary of 42 A-share listed banks in 2023 is more than one trillion yuan, the total number of people is more than 2.6 million, and the per capita salary level is about 400000 yuan. However, the per capita salary of half of the banks decreased compared with the same period last year.
In addition, in 2023, a number of banks disclosed the relevant contents of "reverse wage claim" in their annual reports. Industry insiders believe that with the increasing normalization of deferred payment and recovery deduction system of performance pay, the compensation management of the banking industry will pay more attention to the balance between risk and incentive.
Last year, the per capita salary of nearly half of the A-share listed banks decreased.
According to the formula of per capita salary of employees = (payment to employees and cash paid for employees + salary payable at the end of the period-salary payable at the beginning of the period) / (number of employees at the beginning of the period + number of employees at the end of the period) / 2), in 2023, there are 11 banks whose per capita salary exceeds 500000 yuan, of which Jiangsu Bank is the highest, reaching 607400 yuan. The arithmetic average of per capita salary of 42 A-share listed banks is 437900 yuan.
Although the per capita salary of A-share listed banks exceeded 300000 yuan in 2023, the per capita salary of nearly half of the banks decreased compared with the same period last year, with a maximum drop of more than 14%. Ten of these banks have seen per capita pay decline for two years in a row.
At the same time, the per capita salary of 22 A-share listed banks rose year-on-year in 2023, ranging from 0.23% to 9.43%. The top five banks were Ruifeng Bank, Pudong Development Bank, Zhangjiagang Bank, Jiangyin Bank and Qingdao Bank, with increases of 9.44%, 9.33%, 8.08%, 7.6% and 6.97%, respectively.
From the perspective of per capita salary, several are happy and a few are sad. Most of the banks that live a tight life and those that go against the trend are small and medium-sized banks, while large state-owned banks are relatively stable.
Choice data show that from the total annual compensation of senior executives, in 2023, about half of the A-share listed banks declined compared with the same period last year, including large banks, joint-stock banks, city commercial banks, agricultural commercial banks and so on.
Among the six major banks, the total salary paid by ICBC and Postal savings Bank decreased to varying degrees last year, by about 2.04 million yuan and 1.56 million yuan respectively.
It should be noted that bank executive compensation is affected by factors such as increase or decrease in the number of people, deferred payment and other factors, and the absolute value of compensation data is for reference only.
The stock bank won the first place in the "golden rice bowl".
It is worth noting that there are many kinds of A-share listed banks, including large banks, joint-stock banks, city commercial banks, agricultural commercial banks and so on.
According to the arithmetic average of per capita salary in 2023, according to the analysis of Oriental Wealth Choice data, among the A-share listed banks, 6 state-owned banks are 363800 yuan, 9 national joint-stock banks are 518200 yuan, 17 city commercial banks are 442000 yuan, and 10 agricultural and commercial banks are 403000 yuan.
Based on the arithmetic average of 437900 yuan per capita salary of 42 A-share listed banks, the per capita salary of national joint-stock banks and urban commercial banks exceeds the average, while that of state-owned banks and agricultural commercial banks is relatively low.
In fact, although the salaries of many banks have been reduced, the total number of employees of A-share listed banks has not decreased but increased. The number of employees of more than 30 banks has increased.
In 2023, 42 A-share listed banks employed about 2.6 million people, an increase of nearly 2 per cent, according to Choice.
While the "cake" of some banks is shrinking, the number of people who "eat cake" is still on the increase, which has also led to a reduction in per capita wages.
Citic Bank, for example, added thousands of employees year-on-year despite a decline in total compensation, which led to a 6 per cent drop in annual per capita compensation.
Industry: deferred payment and deduction system will deter the operation of emphasizing performance over compliance
Every reporter noticed that in 2023, a number of listed banks stressed in their annual reports that "deferred payment and recovery mechanisms for performance pay have been established", and the amount of "reverse wage claims" by some banks has increased significantly compared with last year.
For example, the Bank of China said in its annual report that the bank implemented performance pay recovery every year in strict accordance with regulatory requirements and relevant systems, and reported the specific implementation to the board of directors, with a total of 2059 people in 2023, with a total amount of 22.75 million yuan.
ICBC mentioned in its annual report that the bank's senior managers and employees who have an important impact on risk positions implement deferred payment and recovery deduction mechanism to promote the balance between risk and incentive. During the reporting period, the bank was subject to disciplinary action or its disciplinary actions in accordance with the relevant measures for violations of discipline or abnormal exposure of risk losses within its duties.PowerballnumbersforlastnightdrawingAll the employees he deals with have deducted, stopped paying or recouped the corresponding performance pay.
China Merchants Bank pointed out in its annual report that in order to slow down all kinds of operational and management risks, the relevant mechanisms for deferred payment and recovery of performance pay have been established according to regulatory requirements and management needs.
During the reporting period, 4415 employees of China Merchants Bank carried out performance pay recovery, with a total amount of 43.29 million yuan recovered. This figure is down from 58.24 million yuan in 2022, but the number of people being pursued has increased significantly. Over the past two years, China Merchants Bank has recovered a total of more than 100 million yuan in performance pay.
According to the annual report, China Merchants Bank had a total of 116500 employees by the end of 2023, meaning that 3.79 per cent of employees had been deducted for performance pay, with an average of 9805.21 yuan per person.
Behind the "reverse salary recovery" of many banks is the continuous improvement of the deferred payment and recovery system of performance pay.
The performance pay recovery and withdrawal system is a system where senior executives of financial enterprises and employees in positions that have a direct or significant impact on risks fail to fulfill their duties diligently and perform their duties, commit major violations of laws and regulations or cause major risk losses, financial enterprises can not only stop paying part or all of the unpaid remuneration, and can recover the performance remuneration that has already been paid.
This mechanism can be traced back to the "Guidelines for the Supervision of Stable Remuneration in Commercial Banks" issued by the former China Banking Regulatory Commission in 2010, which requires commercial banks to formulate provisions for deferred recovery and deduction of performance remuneration.
Since then, regulatory authorities have issued relevant system regulations on many occasions to supplement and improve the deferred payment and recovery mechanism of commercial banks 'salary. For example, in 2021, the former China Banking and Insurance Regulatory Commission issued the "Guiding Opinions on Establishing and Improving the Performance Pay Recovery and Reducation Mechanism for Bank Insurance Institutions", which provided more detailed operational guidance for banks. It states that if a bank insurance institution restates its financial statements, fraudulent performance appraisal results, violates salary management procedures to issue performance compensation without authorization, or increases salary incentive items without authorization, bank insurance institutions may recover all performance remuneration and other incentive remuneration paid to senior managers and key positions.
In August last year, the Ministry of Finance issued the "Notice on Further Strengthening the Financial Management of State-owned Financial Enterprises" clarifying that for senior managers of financial enterprises and employees in positions that have a direct or important impact on risks, the basic salary is generally no higher than 35% of the total salary. Performance salary shall be deferred based on the phased assessment of the income and risks of the business they are responsible for. More than 40% of the performance salary should be deferred payment, and the deferred payment period is generally no less than 3 years. Ensure that the performance remuneration payment period matches the risk duration of the corresponding business, and if otherwise stipulated by the state, such provisions shall be followed.
"From the perspective of implementation results, the performance pay deferred payment and recovery system has played an important role in strengthening bank risk management and improving internal control levels." A person close to the regulatory authorities told the Daily Economic News reporter that the system can effectively restrict the behavior of senior executives and key positions, encourage them to perform their duties more prudently, and also make salary payments more consistent with employee performance and Risk assumption match.
This person believes that with the increasing normalization of performance pay deferred payment and recovery deductions, salary management in the banking industry will pay more attention to the balance of risks and incentives. "The deferred payment ratio of bank employees, especially for key positions and management, should be subject to the constraints of business risk periods. This system will effectively deter some operations that focus on performance over compliance, and its implementation effect will also be projected into the data changes in the bank's annual report."
Cover photo source: Photo by Liu Guomei, Daily Economic News