Original title: Securities industry bid farewell to the era of high wages?
More than 60% of the directors and supervisors of securities companies have cut their salaries, and the annual salaries of many presidents have been "halved"!
73% of brokerage employees have raised their salaries
Is the era of high salaries in the securities industry over?
As of March 31, 26 listed securities firms have disclosed their 2021 annual reports, accounting for more than 60%.
The securities industry will usher in a milestone moment in 2021. There may be more than 10 securities companies with a net profit of over 10 billion yuan, doubling from 2020.
The performance of some securities companies hit a record high.
In the bright moment, the salaries of some brokerage executives dropped sharply.
According to Chocie of Oriental Fortune, the total annual salary of directors and supervisors of 62% of securities companies has declined as a whole. For example, the salary of directors, supervisors and senior executives of CICC in 2021 will be reduced by more than 70 million compared with the previous year.
The pre-tax remuneration of the "second-in-command" of many securities companies has even been "halved".
Previously, rumors of salary cuts in the securities industry were rampant, causing panic among practitioners.
However, the reporter found that whether it is executive compensation or employee per capita salary, salary reduction is not an industry-wide phenomenon, among which more than 70% of the securities companies have an increase in the per capita salary of employees.
The securities industry still maintains strong attractiveness and competitiveness for talents.
It is worth noting that the regulators have been restraining the excessive incentives of securities companies in many ways, including the inclusion of executive compensation into the cultural construction evaluation index system.
The salary of the chairman and president of some securities companies has dropped significantly
Another year of "annual report season" for securities companies.
As the head of a financial institution, the salary of the chairman and president of various securities companies has attracted much attention from the market.
According to brokerage Chinese reporters combing through the annual reports of various brokerages, the chairman of many brokerages may be subject to the salary limit of state-owned enterprises, and the pre-tax salary is not high.
Up to now, only Zhang Youjun, chairman of CITIC Securities, has received a pre-tax salary of more than 5 million (5.8539 million yuan).
The salaries of the chairman of many securities companies have not increased but decreased.
Among them, Liu Xuemin, chairman of the first venture, has the largest decline, from 9.8071 million yuan in 2020 to 4.3306 million yuan in 2021 (including deferred compensation).
Huo Da, chairman of China Merchants Securities, and Wu Chenggen, chairman of Zheshang Securities, both cut their salaries by more than 20%, and the pre-tax remuneration in 2021 will be 3.8841 million yuan and 2.5844 million yuan respectively.
The operating income of the above-mentioned three securities firms will actually increase in 2021. The first venture will increase by 4%, China Merchants Securities will increase by 21%, and Zheshang Securities will increase by 54%.
In addition to the chairman, the salary of some brokers' "second-in-command" has also shrunk.
According to the statistics of Chinese reporters from securities companies, 53% of securities companies' general managers/presidents/CEOs' salaries have declined, excluding those brokerages with "general manager personnel changes from the end of 2020 to the disclosure date of the 2021 annual report".
Huang Zhaohui, the CEO of the top brokerage CICC, has a pre-tax salary of 15.982 million yuan in 2020, and by 2021, his salary will drop to 7.953 million yuan, a decline of 50.24%.
Judging from the company's performance, CICC's operating income in 2021 is 30.131 billion yuan, a year-on-year increase of 27.35%.
Net profit was 10.778 billion yuan, a year-on-year increase of 49.54%.
The salaries of "second-in-command" of some small and medium-sized securities firms have also declined significantly.
The pre-tax remuneration of Wang Linjing, president of Tianfeng Securities, fell from 9.4752 million in 2020 to 4.3299 million in 2021.
Wang Fang, president of First Ventures, fell from 8.9431 million in 2020 to 4.2412 million (including deferred compensation).
The two executives also fell by more than 50%.
Lu Kai, president of Guohai Securities, fell from 5.968 million in 2020 to 4.403 million in 2021 (including deferred compensation).
Bi Yuguo, general manager of Zhongtai Securities, fell from 2.6046 million in 2020 to 1.9291 million in 2021.
The pre-tax remuneration of Zheshang Securities President Wang Qingshan in 2021 was 2.5844 million yuan, compared with 3.238 million yuan in the previous year.
The decline rate is more than 20%.
Over 60% of the total annual salary of directors and supervisors of securities companies has declined
In addition to the first and second leaders, the income of directors, supervisors and senior executives of many listed securities companies has actually declined as a whole.
According to Chocie of Oriental Fortune, among the listed brokerages that have disclosed their annual reports as of March 31, 62% of the brokerages’ directors and supervisors’ total annual salaries have declined.
Among them, the total pre-tax remuneration of directors, supervisors and senior executives of CICC has shrunk the most, to 94.418 million yuan in 2021, a decrease of as much as 73.845 million yuan from 168 million in 2020.
Several senior executives of CICC bid farewell to their annual salary of tens of millions. Chief Operating Officer Chu Gang, Management Committee Member Huang Haizhou, Management Committee Member Wu Bo, Management Committee Member Wang Sheng, and Secretary Xu Yicheng, the pre-tax remuneration in 2021 will be 7.9 million -8.5 million range.
Lin Yong, assistant general manager of Haitong Securities and president of Haitong International, will receive a pre-tax salary of 7.6462 million yuan in 2021, down 49% from 15.0822 million yuan in 2020.
It is understood that Haitong International's full-year revenue in 2021 was HK$5.252 billion, a year-on-year decrease of 37%; the profit attributable to shareholders was HK$301 million, a year-on-year decrease of 84%.
The decline in performance is related to the dismal 2021 of the Hong Kong capital market.
The pre-tax remuneration of many senior executives of the aforementioned China Merchants Securities, Zheshang Securities, and First Ventures also declined to varying degrees.
In this regard, the securities companies involved explained to the Chinese reporters of securities companies that the arrangements were mainly based on the company's operating conditions.
Another brokerage source responded that the company's salary data was truthfully disclosed.
Since last year, there have been rumors of "salary cuts" in the industry, but none have been confirmed.
According to the statistics of the annual reports of 26 listed brokerages by brokerage China reporters, from the perspective of "high compensation for directors and supervisors", it is not the whole industry to reduce wages. For example, there are many securities companies in East China.
From the perspective of "employee salary per capita", Oriental Fortune Chocie shows that 73% of brokerages have raised their salary.
A brokerage person told a brokerage China reporter that the company did reduce some executives' salaries but not all of them. The company actively complied with the industry development direction and regulatory requirements, built a stable salary system, and still followed the market-based salary policy for the recruitment of talents.
5 million annual salary of directors, supervisors and senior executives are concentrated in top brokerages
According to the incomplete statistics of Chinese reporters from securities companies, as of March 31, at least 58 directors, supervisors and senior executives of 26 listed securities companies have received pre-tax remuneration of more than 5 million from the company in 2021. Investment, CICC.
Among them, about a few brokerage executives earn more than 10 million yuan.
The pre-tax remuneration of Ma Yao, member of the executive committee of CITIC Securities in 2021, will be 11.6263 million yuan, Xue Jirui, member of the executive committee, will be 11.5263 million yuan, and senior management member Jin Jianhua will be 10.7462 million yuan.
Wang Guangxue, the board secretary of CITIC Construction Investment, is 7,012,800 yuan, Zhang Xinfan, member of the executive committee, 5,924,300 yuan, Liu Naisheng, member of the executive committee, 5,939,200 yuan, Huang Ling, member of the executive committee, 6,679,200 yuan, and Peng Wende, member of the executive committee. 6.6507 million yuan.
It is understood that CITIC Construction Investment will also issue the 2017 Director, Supervisor, and Senior Loyalty Award in 2021.
In addition, some small and medium-sized brokerage executives also receive very substantial annual salaries.
For example, Zhai Chenxi, executive vice president of Tianfeng Securities, will receive a pre-tax remuneration of 9.9932 million yuan in 2021.
Wu Jiangang, chairman of the board of supervisors of Tianfeng Securities, and Wang Yong, chief information officer, also received more than 5 million pre-tax remuneration.
Yang Liping, vice president of Guohai Securities, will be paid 9.8213 million yuan (including deferred compensation) in 2021; vice president Du Wanzhong will be 7.1619 million yuan (including deferred compensation).
Lu Weiming, the newly appointed president of Orient Securities, will receive a salary of 5.8927 million yuan in 2021.
Vice President Xu Haining's pre-tax salary fell below 5 million.
Compensation of compliance director: CITIC topped the list with 6.9 million yuan
In this executive compensation statistics, the Chinese reporters of securities companies also deliberately sorted out the compensation of compliance directors of listed securities companies.
Specifically, among the listed brokerages that have disclosed the salary level of compliance directors, a total of 24 compliance directors have their salaries unveiled (including resignation).
Among them, the compliance director of CITIC Securities has the highest salary level, reaching 6.9 million yuan.
Followed by the compliance directors of Founder Securities, China Securities, and Guotai Junan, but the salary did not exceed 5 million yuan.
Some of the announced compliance directors have less salary, and some even have only a few hundred thousand, mainly because the entry time of the year was late.
For example, the salary announced by the compliance director of CICC is 127,000 yuan, and the executive's term will only start in December 2021.
Central China Securities has a similar situation.
As early as July 2008, the China Securities Regulatory Commission issued the "Trial Regulations on the Compliance Management of Securities Companies", requiring each securities firm to set up a compliance director, which has a history of 14 years.
As a senior executive, the compliance director cannot be in charge of specific business departments, so his assessment management system and salary level are also different from other executives.
In order to ensure the realization of its reasonable treatment, the regulatory authorities issued the "Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies" (hereinafter referred to as the "Administrative Measures") in June 2017, which further clarified the treatment and assessment of compliance directors.
Article 28 of the "Administrative Measures" stipulates that securities fund operating institutions shall formulate remuneration management systems for compliance officers and compliance managers.
If the person in charge of compliance is competent, his total annual salary income shall not be lower than the median of the total annual salary income of the company's senior management; The average level of staff.
Executive compensation is included in cultural construction evaluation indicators
The securities industry has been regulated on salary management for a long time, and the regulator advocates that securities companies should establish a scientific performance appraisal and a reasonable salary management system.
As early as 2018, in the field of investment banking, the regulation required that securities firms shall not directly link the salary income of employees with the income of the projects they undertake or undertake; The key personnel of the project establish the income deferred payment mechanism.
In recent years, in the evaluation of cultural construction practice, the regulators have also clearly required securities companies to establish an incentive mechanism that takes into account both long-term and short-term, and to form a reasonable and effective long-term evaluation system and income by appropriately extending the performance evaluation cycle and salary deferral. distribution mechanism.
A Chinese reporter from a securities firm noticed that, according to the previous solicitation of opinions from the regulators, among the evaluation indicators of cultural construction practices, there are constraints on the compensation of senior executives of securities firms.
One of the deduction indicators is that “the compensation incentives are too aggressive and fail to reflect the requirements of establishing a long-term incentive mechanism”.
The association explained that "too aggressive" means that the average salary increase of the company's senior management is higher than the increase in operating income or net profit by more than 30 percentage points (inclusive), and there is no reasonable explanation.
(Example: A company’s operating income increases by 15%, executive compensation increases by 50%, and the executive compensation increase is 50%-15% higher than the revenue growth rate, that is, 35%, reaching more than 30%, which is obviously unreasonable. ) The remuneration of executives is calculated according to the statistical caliber of “Annual Remuneration Withdrawal” in the “Remuneration Statement of Senior Management” in the CISP system, and the operating income and net profit data should be consistent with the “Profit Supervision Statement” in the CISP system.
The score for this deduction item is 1 point, and the score is the highest among the 4 deduction items.
On April 1 this year, the regulatory authorities implemented the "Measures for the Supervision and Administration of Directors, Supervisors, Senior Managers and Practitioners of Securities Fund Operating Institutions", which also stipulates the remuneration of senior executives of securities companies.
The regulations state that securities and fund operating institutions should establish a long-term and reasonable salary management system, fully reflect compliance management and risk management requirements, and avoid short-term, excessive incentives and other improper incentives.
A securities and fund management institution shall establish a salary deferred payment mechanism for the chairman of the board, senior management personnel, principals of major business departments, principals of branch offices and core business personnel, and reasonably determine the standard and period of deferred salary payment in labor contracts and internal systems. and proportions, etc.
Author: Tan Chudan, Liu Yiwen