The Paper reporter Hu Zhiting
After the implementation of the second phase of C-ROSS, non-listed insurance companies have disclosed for the first time the income of directors and supervisors. Which insurance companies have higher executive salaries?
According to incomplete statistics from The Paper, as of now, about 145 non-listed insurance companies have disclosed the solvency report for the fourth quarter of 2022 on the website of the Insurance Association of China, and more than 120 insurance companies have disclosed the relevant remuneration of directors, supervisors and senior managers. .
However, among the more than 120 insurance companies that disclosed the high salaries of directors and supervisors, a relatively small number of companies only disclosed the total salary, did not disclose the highest salary, or only disclosed the relevant salary range.
Since a small number of insurance companies have differences in the disclosure caliber and the method of disclosing the amount, or the disclosure information is incomplete, The Paper selected 116 of them as statistical samples.
The salary disclosed by most insurance companies is the annual situation, and some insurance companies disclose the monthly salary. The Paper presents the 12-month monthly salary as the annual salary.
At the end of 2021, the "Insurance Company Solvency Supervision Rules (II)" issued by the China Banking and Insurance Regulatory Commission requires that from the first quarter of 2022, insurance companies shall prepare solvency reports in accordance with Rule II.
Insurance companies shall present relevant information on the remuneration of directors, supervisors and senior executives of the head office for the current year in the fourth quarter report, and do not need to present it in other quarters, including the number of the above-mentioned personnel in each remuneration range, the highest remuneration, and profit-linked information. The status of the reward program, etc.
The highest salary is nearly ten million
Overall, the disclosure shows that no non-listed insurance company has a pay limit of more than 10 million yuan for directors, supervisors and senior executives.
The highest annual remuneration levels of directors, supervisors and executives of various non-listed insurance companies are mostly concentrated in the range of 1 million to 3 million yuan, and at least 10 insurance companies have the highest annual remuneration of directors, supervisors and executives exceeding 5 million yuan.
Among these 10 companies, 8 are personal insurance companies, 1 is a property insurance company, and 1 is a reinsurance company.
Among the top 20 insurance companies with the highest annual salaries for directors, supervisors and senior executives, 13 are personal insurance companies, 4 are property insurance companies, and 3 are reinsurance companies, and the latter two are foreign-funded or Sino-foreign joint venture property insurance companies (reinsurance companies) )company.
In 2022, at least 37 non-listed insurance companies have directors, supervisors and executives with a maximum salary of more than 3 million yuan.
Among these 37 companies, 22 are personal insurance companies, 9 are property insurance companies, and 6 are reinsurance companies.
Generally speaking, the highest salaries of directors, supervisors and executives of life insurance companies are relatively high.
Among them, the highest annual salary of the directors, supervisors and senior managers of Union Life Insurance is 9.5385 million yuan, leading all insurance companies.
Although the high salaries of directors and supervisors "lead the way", in terms of performance, Union Life achieved a net loss of 2 billion yuan last year.
Among the top three insurance companies with the highest salaries for directors, supervisors and senior executives, the executives of Anda Insurance are relatively "less things and more money". The company achieved an insurance business income of 30 million yuan last year and a net loss of 1.8914 million yuan. The company's business scale is small.
In 2022, 9 directors, supervisors and senior executives of Anda Insurance will be granted 7,810 stock options with an exercise price of US$199.03 per share and an expiration date of February 27, 2023.
In January of this year, the China Banking and Insurance Regulatory Commission disclosed that it agreed to Huatai Property & Casualty Insurance to acquire Anda Insurance’s overall insurance business and corresponding assets and liabilities.
As early as December 2020, Huatai and Anda announced that the two parties will adopt a smooth transition method to gradually merge Anda's China business into Huatai Property Insurance.
Beijing Life Insurance, which ranks third in the annual highest salary of directors, supervisors and senior managers, achieved insurance business income of 4.662 billion yuan last year, with a net loss of 196 million yuan.
As a new regulation to be implemented from 2022, some insurance companies "forgot" to disclose executive compensation when they first disclosed the solvency report for the fourth quarter of last year, and then supplemented the disclosure in the form of an updated report.
For example, Minsheng Life Insurance and China Coal Property & Casualty Insurance.
Most insurance companies do not pay compensation with stock options
In terms of disclosure, most insurance companies stated in their solvency reports that they did not pay remuneration in the form of stock options, nor did they pay for rewards linked to profits.
However, in terms of performance remuneration, some insurance companies have fully disclosed the situation. For example, Soochow Life Insurance pointed out that the total amount of related remuneration paid this year is 0.
The company's party committee leaders are assessed by the Municipal Party Committee's Assessment Office, and their performance is directly linked to the company's main operating indicators; the performance of senior managers other than the company's party committee leaders is directly linked to the departments in charge, and department performance is linked to the company's operating conditions.
The directors, supervisors and executives of Zhonghong Life Insurance have stock options and a reward plan clearly linked to profits.
According to the disclosure of Zhonghong Life Insurance, the highest salary of the company's directors, supervisors and senior executives is between 5 million and 10 million yuan. At the end of the period, the number of people holding virtual stock options is 11, and the execution price is to be determined.
In 2022, Zhonghong Life Insurance expects that Dong Jian Gaoneng will receive a profit-linked bonus of about 9.61 million yuan, but it is still subject to the approval of the board of directors.
Meiya Property & Casualty Insurance also has rewards linked to the profits of insurance companies and the amount is relatively high.
According to the company’s disclosure, the total performance remuneration for directors, supervisors and senior executives of the head office of Meiya Property & Casualty Insurance in 2022 is about 8.6688 million yuan, including the performance remuneration determined based on the performance evaluation results of the year (including deferred payment of part of the performance remuneration), excluding Performance-based compensation deferred from previous years to the current year.
Among the various property insurance companies, Huanghe Property Insurance disclosed in more detail the assessment levels and assessment indicators of the reward payment plan linked to profits.
For example, the company's executive performance compensation comprehensively considers the new company's talent introduction needs, strategic planning and other factors. After hiring Willis Towers Watson for special consultation, the executive salary level is determined to be above the middle level in the market.
The level of executive performance remuneration strictly complies with the relevant regulations of insurance supervision. Among the annual target remuneration of the company's executives, the ratio of annual basic remuneration to annual target performance remuneration is 50:50, which complies with regulatory requirements.
The annual performance appraisal grade of the company's executives is excellent, and the maximum performance-based salary coefficient shall not exceed 3 times the basic salary.
Huanghe Property & Casualty Insurance also pointed out that the annual performance appraisal indicators of the senior executives of the company's head office have set indicators related to profits. Value (profit) indicators account for 40% of the KPIs of some executives in charge of business, and 20% of other executives’ value (profit) indicators.
Profit indicators set the initial, budget, and challenge goals respectively.
In recent years, under the global low interest rate environment and the downward trend of interest rates, the insurance industry has also been deeply affected by multiple factors such as the slowdown of economic growth and the spread of the new crown epidemic. The performance of both life insurance companies and property insurance companies is not satisfactory. .
As a result, some directors, supervisors and senior executives of insurance companies failed to receive performance bonuses due to substandard performance appraisals.
Zhongyuan Agricultural Insurance bluntly stated in the solvency report for the fourth quarter of 2022: "The reward plan linked to profit during the reporting period is independent of the annual salary, and it has not been issued because the profit target has not been achieved."
Zhongyuan Agricultural Insurance is the first insurance legal person institution in Henan Province, headquartered in Zhengzhou.
Among the company's 20 directors and supervisors, 8 have an annual salary of less than 500,000 yuan, another 8 have an annual salary between 500,000 and 1 million yuan, and 4 have an annual salary of 1 million to 1 million yuan. 5 million yuan, of which the highest annual salary is 2.1416 million yuan.