Xinhua News Agency, Beijing, February 16 (Reporter Li Yanxia) In order to give full play to the guiding role of performance-based compensation in the management of bancassurance institutions, the China Banking and Insurance Regulatory Commission recently issued a document that puts forward specific requirements on the establishment and improvement of performance-based compensation recourse mechanisms for bancassurance institutions .
The "Guiding Opinions on Establishing and Improving Performance Salary Recovery and Deduction Mechanisms for Banking Insurance Institutions" requires that bancassurance institutions should strengthen their evaluation of the incentive effects of the compensation system.
The bancassurance institution may recourse and deduct the performance compensation within the corresponding period for senior management personnel and personnel in key positions who have been exposed to excessive risks within the scope of their duties due to obvious negligence or failure to fulfill their prudential management obligations.
The guiding opinions stipulate that all performance remunerations of senior management personnel and key positions responsible for the main responsibility can be reclaimed within the corresponding period, including the bancassurance institution’s important regulatory indicators that seriously fall short of the standard or deviate from the reasonable range; by the China Banking Regulatory Commission And its dispatched institutions or other financial regulatory authorities adopt risk management measures such as takeover; major risk events occur that have a bad impact on the order of the financial market, etc.